Sometimes, to fight the illnesses that threaten our bodies every day, it’s necessary to go back to the past for time-honored medicines. A Chinese-based company that is following this trend is Biostar Pharmaceuticals, Inc. (OTC:BB: BSPM, Stock Forum), which, in early October, received word from the Beijing government for a product known as Aoxing Ganbao.
This remedy, produced by the Xianyang-based drug manufacturer, is a traditional Chinese herbal product, complementary for its flagship Xin Aoxing Oleanolic Acid Capsule to treat Hepatitis B. The patient attaches the medicine to his or her waist with the herbs facing the navel, and the medicine nourishes the liver and reduces inflammation without side effects. Given that Hepatitis B is a long-term condition, patients can use it off and on following the initial month in which the product contains doses for. The price tag is just $20 per dose and margins are about 70%.
On October 2, Biostar won a patent from the country’s State Intellectual Property Bureau, thus limiting competition for manufacture and sale of the drug.
Biostar Pharmaceuticals, through its wholly-owned subsidiary in China, develops, manufactures and markets pharmaceutical and medical nutrient products for a variety of diseases and conditions. Besides its anti-hepatitis line, BSPM makes two broad-based Over-The-Counter products, two prescription-based pharmaceuticals and 10 nutrients, and is in the process of applying for two patents.
Other products in the pipeline include one to combat colds and runny noses; another to fight coughs and bronchial congestion; another to fight heart-related illnesses, still another to fight diarrhea.
Located near the Qinling Mountains in Xian Yang provinec, Biostar has access to more than 3,000 botanic plant varieties, many with medicinal potential. BSPM operates an herbal medicine planting base, which provides it with many of its needed materials at a significantly lower cost than purchasing from third parties, and eliminates most needs for transportation.
As this revolutionary medicine (yet, one that is still quite old and traditional) receives the blessings of the government, the company’s stock price is still quite comfortable for small-cap investors aimed at adding value to their portfolios. BSPM was in a gully at 30 cents back in May, before peaking at $4.00 in mid-August. For now, even with its newfound fortune, the price is in the middle of that range at $2.15, still giving investors enough room to get on board to give this company a good looking over.
Disclosure: The author, Peter Szafranski, has not been compensated nor does he own a position in the above mentioned company.
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