SOURCE: Benda Pharmaceutical, Inc.

November 05, 2007 06:17 ET

Benda Pharmaceutical Updates Full Year 2007 and 2008 Revenue Guidance

Full Year 2007 Revenue Guidance: $25.1 MM

Full Year 2008 Revenue Guidance: $56.7 MM

HUBEI PROVINCE, CHINA--(Marketwire - November 5, 2007) - Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB: BPMA), a China-based pharmaceutical company producing traditional Chinese and conventional medicines, as well as Gendicine®, the world's first commercialized gene therapy medicine for the treatment of cancer, announced today revised full year 2007 revenue guidance of $25.1 MM -- a 58% increase over 2006 revenue. The Company has also provided updated full year 2008 revenue guidance of $56.7 MM -- a 126% increase over anticipated 2007 revenue. The 2008 revenue guidance is predicated on the reopening of two subsidiaries (Jiangling Benda and Yidu Benda) by the end of 2007.

The much-publicized restructuring of the Chinese State of Food and Drug Administration (SFDA) has had a temporary but widespread negative impact on Chinese pharmaceutical firms in 2007. The Chinese government, in an unprecedented fight against corruption resulting in the execution of the former Director of the SFDA, is dramatically tightening its food, drug and medical device statutory measures as well as reassessing much of its regulatory philosophy. (Source: Pharm Asia News)

Benda was in no way involved in the controversy, but it has been hindered by others' mistakes. Specifically, the SFDA restructuring had the following unanticipated effects on certain Benda subsidiaries and products:

--  Jiangling Benda: Initially expected to reopen in early 2007 following
    mandated upgrades, the plant remains idle while Benda awaits official
    inspection and approval from SFDA officials. Benda has been prepared both
    for the visit and to re-initiate production for several months. The
    unanticipated delay cost Benda approximately $7.7 MM in 2007 lost revenue,
    based on October 2006 projections.
    
--  Yidu Benda: Initially expected to reopen in August 2007 after its
    mandated upgrade of environmental control systems, Yidu still awaits
    official inspection and approval from SFDA officials. As with Jiangling,
    Benda has been fully prepared for both the visit and to re-initiate
    production at Yidu for several months. The unanticipated delay cost Benda
    approximately $2.6 MM in 2007 lost revenue, based on June 2007 projections.
    
--  Qiweiben Capsule and Yan Long Anti-Cancer Oral Liquid: These two new
    traditional Chinese medicines have been grounded in the SFDA approval
    process for over a year -- as have most new drugs nationwide during this
    temporary period of SFDA upheaval. The unanticipated delay cost Benda
    approximately $1.8 MM in 2007 lost revenue, based on October 2006
    projections.
    

"Benda continues to execute on its business plan; were it not for the unexpected impact of the SFDA scandal and subsequent restructuring, our latest anticipated results for both 2007 and 2008 would still be much in line with initial expectations," stated Benda Chairman and CEO Yiqing Wan. "We are confident that the clinical success of Gendicine® and our diligence in other areas of our business will see Benda safely through this period and stronger for it in years to come."

Benda Investor Resources

Fact Sheet: http://files.shareholder.com/downloads/BPMA/151228937x4452657x111082/95430c49-a77a-43c9-89ad-d6cc75cffc59/FactSheet.pdf

PowerPoint Presentation: http://files.shareholder.com/downloads/BPMA/151228937x4452657x111087/35a10e95-f328-45ad-81ab-529f6cc1af6d/Bendapresentation061107.pdf

Gendicine Video: http://play.rbn.com/play.asx?url=shareholder/shareholder/wmdemand/bendavideo.wmv&proto=mms?mswmext=.asx

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.

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