Renhuang Pharmaceuticals Submits Production Certificate Application to SFDA for Newly Developed Nutritional Supplement

HARBIN, China--(BUSINESS WIRE)--Renhuang Pharmaceuticals, Inc. (or "the Company", Stock symbol: RHGP.OB), a leading provider of natural health care products in the People's Republic of China (PRC), today announced that it has applied for a Production Certificate for its Acanthopanax Healthy Oral Solution.

The new Siberian Ginseng drug should help to further solidify the Company’s leading position within the field of Acanthopanax products and supplements. As the growing middle class in China obtains increased disposable income, their health consciousness is expected to grow rapidly.

Renhuang’s Chairman, Mr. Shaoming Li, commented, “Our team of skilled researchers and developers has listened to our customers to develop a comprehensive new product that we have added to our portfolio of Acanthopanax supplements. This Oral Solution product is unique, yet based on thousands of years of traditional Chinese medical knowledge. We believe it will help fill a need in the market, and we are happy to develop another product that will provide our customers with a strong healthcare solution while also adding substantial revenue and profit to our company.”

Following the approval for production, Renhuang expects first year revenue from its Acanthopanax Healthy Oral Solution to reach approximately US$4 million with a profit margin of 50%.

About Renhuang Pharmaceuticals, Inc.:

Renhuang Pharmaceuticals is a leading bio-pharmaceutical company located in Harbin in the Heilongjiang Province in Northeast China. Renhuang is primarily engaged in the research, production, and sales of bio-pharmaceutical products in Mainland China. The Company’s main products are Siberian ginseng, shark liver oil and several other traditional medical products. It is estimated that 70% of China’s natural supply of Siberian Ginseng is currently controlled by the Company.

The company also anticipates approval within six to nine months by State Food and Drug Administration (“SFDA”) for up to five of its new Monoclonal Antibody Reagent Box series products. These products are 60% more reliable than those from its competitors and also adhere to “Good Manufacturing Practices”, or “GMP”. Moreover, the company is in the process of building its own immune system research and development function. Overall, the company is able to achieve significant cost savings compared to most of its competitors, who purchase their raw materials from third parties.

Over 2000 sales agents are employed in seventy sales centers across twenty-four districts and cover over 50% of the greater China area and 80% of its population, including the most populous and developed Eastern China. The Company employs over 50 people in its R&D department, a number of which are well-recognized and respected pharmaceutical professors and research scientists from National Navy Pharmaceutical Research Center, Beijing Ellionbio Research Center and other well known institutions. State-of-the-art research and production facilities using the latest technologies are currently used by the Company’s scientists to develop new and innovative areas, including antiseptic and immune system products and Diagnostic kits. RHGP-G

Safe Harbor Statement

This press release contains certain statements that may include 'forward-looking statements' as defined in the Securities Act of 1933, and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are 'forward-looking statements.' Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.