SOURCE: AXM Pharma, Inc.

June 29, 2005 08:30 ET

AXM Pharma Wins Bid to Sell Asarone and Sulfur Cream to Hospitals in One of Largest Cities in Northern China

LAS VEGAS, NV -- (MARKET WIRE) -- June 29, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it has successfully won the pharmaceutical bidding process by the government of Xi'an to provide pharmaceutical products to the hospitals in Xi'an. Xi'an is one of the largest cities in northwest china with a population of over 6.62 million and is the capital of Shaanxi province, located in the southern part of the GuanZhong Plain.

Under the medical regulations of Xi'an, the Xi'an government holds an annual competitive bidding process to award bids to pharmaceutical companies. Companies must be selected to provide products to the hospitals and are awarded a one-year certificate to sell their products. AXM was awarded the agreement to provide Asarone Tablets: 0.03g*12 tablets, Asarone Tablets: 0.03g*24 tablets, Compound Sulfur Cream: 25g and Compound Sulfur Cream: 100g.

Asarone tablets have been found to be effective as an anti-septic, anti-inflammatory, asthma reducing and cough prevention medicine. Separately, Asarone injectables solution (not manufactured or distributed by AXM Pharma) has been identified as one of the 8 experimental drugs recommended by the Chinese State Traditional Chinese Medicine Administration for combating SARS, indicating that Asarone tablets may have similar therapeutic effects. The use of Asarone tablets has also been shown to be effective for the treatment of pediatric asthma. Additionally, Asarone has been used to treat slight and severe infantile pneumonia, child pneumonia, adult bacterial pneumonia and chronic and acute bronchitis, which are symptoms of SARS.

Lifushu is an antiseptic cream for cleansing acne and for relieving the symptoms of eczema, psoriasis and other skin irritations, such as contact dermatitis.

AXM Pharma Inc., http://www.axmpharma.com, 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 http://www.iccinfo.com 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:
    Tom Bostic
    Investor Communications Company, LLC
    (866) 562-0134