SOURCE: AXM Pharma, Inc.

April 15, 2005 08:15 ET

AXM Pharma Signs $7.25 Million Distribution Agreement

LAS VEGAS, NV -- (MARKET WIRE) -- April 15, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it has signed a $7.25 million distribution agreement with Sinopharm Holding Guangzhou Co. Ltd for the Company's line of Elegance, Asarone and Anti-Fatigue products for distribution in Shanghai. The contract is for sales in 2005. AXM Pharma has signed a total of nearly $17 million in contracts since the Company's factory opened in March.

Sinopharm Holding Guangzhou Co. Ltd, an affiliate of China National Pharmaceutical Group Corp. ("Sinopharm"), is actively engaged in the research and development, capital investment, manufacture and trade of pharmaceuticals and medical instruments. Sinopharm has achieved an annual sales volume of 10 billion RMB (over 1.2 billion U.S. Dollars) and a total import and export volume of 200 million U.S. Dollars.

The Company also will file its annual report today and will hold its fourth quarter 2005 earnings conference call next week. Doug MacLellan, Vice Chairman, will deliver prepared remarks and conduct a question and answer session. The Company will announce call in numbers and dates early next week.

The Company will discuss how 2004 laid the foundation for a record 2005. With distribution agreements already totaling over $17 million in the first few months of 2005, AXM Pharma anticipates that it will sign between 9 - 15 distributors in 2005 for sales of products in China, Hong Kong, Macau, Taiwan, Thailand and Singapore. This will give the Company access to as many as 18 major cities in 2005 and 83 key cities in the region over the next 3 years.

"We are extremely excited about the developments of the Company. 2004 was a transitional and difficult year, but with the factory completion, distribution and purchase agreements being executed, we look forward to an exciting 2005," stated Douglas MacLellan, Vice Chairman of AXM Pharma, Inc.

AXM Pharma Inc.,, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit or call Investor Communications Company, LLC at 866 562 0134.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.

Contact Information

  • Contact Information:
    Tom Bostic
    Investor Communications Company, LLC
    (866) 562-0134