China Botanic Pharmaceutical Inc : China Botanic's Siberian Ginseng Extract Recognized as Safe Medicine

China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and Traditional Chinese Medicines ("TCM") in China, today announced that the Company's Siberian Ginseng Extract was recognized as Safe Medicine at the 8th session of the Selection Event, hosted by the Health Newspaper in China and supported by the Ministry of Health of China. 

In May 2012, at the 8th session of the Selection event, a total of 30 medicines manufactured by 30 Chinese pharmaceutical companies were recognized as Safe Medicine by civilians. Since its debut in 2004, the Selection Event is well known in China's pharmaceutical industry. The selection procedure includes conducting surveys of Chinese consumers and their opinion of products offered by domestic pharmaceutical companies The Selection Event is designed to understand the needs of patients and gain valuable insights from the general population on the quality and remedial effect of different medications.

"We are honored that our Siberian Ginseng Extract product has been recognized as Safe Medicine by our domestic consumers along with 29 other medicines from well-known pharmaceutical companies. We believe this reflects on our commitment to deliver high-quality products which optimally meet our customer's needs," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "We are encouraged by this recognition as we continue to make efforts to expand the scope and reach of Siberian Ginseng in China and internationally."

China Botanic Pharmaceutical Receives a Tax Exemption in 2011

China Botanic Pharmaceutical Inc. (AMEX: CBP) (formerly Renhuang Pharmaceuticals, Inc.) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced that the Company has passed the annual High-Tech Enterprise assessment, and that as a result, China Botanic will continue to enjoy a 10 percent tax exemption and will be entitled to a preferential tax rate of 15 percent in 2011 which is notably lower than the statutory income tax rate of 25 percent.As previously disclosed on March 30, 2010, China Botanic has been awarded the State High-Technology Enterprise certificate. As a Certificate recipient, China Botanic will have access to a series of national and local government support programs, including favorable tax treatment. While the certificate is valid for three years, China Botanic must successfully complete an annual assessment to remain eligible for the tax benefits.For fiscal 2011, the Company expects to see revenue in the range of $70.6 million to $71.7 million, and after-tax net income of $22.9 million to $23.2 million. These figures represent a 28% to 30% increase from fiscal 2010 revenue of $55.2 million and net income of $17.9 million. The Company's 2011 guidance does not take into account the impact of any potential acquisitions.To achieve its guidance, the Company will focus on increasing average selling prices, introducing new products, expanding its marketing efforts to gain additional market share, continuing to develop a larger distribution network and expanding into overseas markets. China Botanic also anticipates that it will benefit from the burgeoning Chinese national health insurance program."Looking into 2011, we are optimistic about our growth outlook and the market prospects for our all-natural plant based remedies. As people learn more about depression in China, the market potential for China Botanic's scientifically-verified depression and anxiety fighters will continue to increase. The Company will capitalize on opportunities provided by health care reform, as well," said Mr. Shaoming Li, the Company's Chairman and Chief Executive Officer. "Our thorough market research shows that China Botanic has a stable customer base and our previous average selling prices were below the market price. We anticipate attractive revenue and net income growth to be largely driven by an increase in average selling prices of our key products, sales and distribution expansion, and the Chinese government's healthcare reform. We also expect increased sales contribution from our latest new products introduced in 2010."

Analyst Research on China-Biotics Inc. and Auxilium Pharmaceuticals Inc. -- Probiotics are Latest Pharma Trend

The rising demand for probiotics is one of the most interesting trends amongst pharmaceutical companies. Probiotics are helpful bacteria and are often used to help the immune system and aid digestion. Probiotics are most commonly found in yogurts, baby formulas and pills but the uses are expanding. To date, the probiotics industry has grown almost 20% in the past year with Asian demand leading the way.

While the global economy still recovers, the growing demand for probiotics is an exciting trend for the pharmaceuticals industry. The fact that probiotics can be found in everyday products like yogurt and dairy products distinguishes it from the typically medicinal usage of pharmaceutical products.

Probiotics also differ from typical pharmaceutical products in the sense that new variants don't linger for years in extensive multistage drug trials. Probiotics go from development to the market at a much faster rate. In a recovering economy where time is critical, probiotics are an increasingly marketable and profitable product and one company making great strides as an emerging producer of probiotics is China-Biotics Inc. Investors looking for complimentary research on China-Biotics Inc.

China-Biotics Inc. will be releasing its Q3 2010 results on November 15th. Another player in the drug related products set to release its earnings late this month is Auxilium Pharmaceuticals Inc. Investors looking for free research on Auxilium Pharmaceuticals Inc.