Biostar says it resolved hepatitis B drug ad issue

StephenW

<http://www.businessweek.com/ap/financialnews/D9FBDNQG0.htm>

The Associated Press April 27, 2010, 8:43AM ET

Biostar says it resolved hepatitis B drug ad issue

NEW YORK
Drugmaker Biostar Pharmaceuticals said Tuesday it received new marketing
approval for an over-the-counter hepatitis B drug, its main product, in
China's Shaanxi province.

Biostar said it was cited for failing to comply with advertising regulations
by the Shaanxi State Food and Drug Administration on Thursday. According to
Biostar, the agency said the drug's advertising content did not comply with
regulations, and violated rules by using images of patients to suggest the
product's efficiency and used absolute language to say the drug works.

Biostar, which is based in Xiangyang, saw its stock drop 19 percent Monday
following reports of the clash.

The state FDA approved the new advertising language for Xin Aoxing Oleanolic
Acid Capsules on Thursday. Biostar said the state FDA's notification did not
disrupt manufacturing or sales of the drug, and should not change its annual
guidance. Earlier this month, the company said it expects $18 million to $20
million in net income this year, on $80 million to $82 million in revenue.