Chinese manufacturer and distributor of specialty paper products and packaging materials Dragon International has completed the evaluation and testing of an improved suppository composite film product that meets all the requirements for pharmaceutical packaging applications.
Dragon International has recently requested a permit from China's State Drug and Food Administration to manufacture and sell this new film product and expects to receive approval within the next three months.
The expected launch of the new product represents another step in Dragon International's initiative to migrate to higher margin sophisticated packaging for the pharmaceutical industry.
Management anticipates that gross margins for this new product category should be in the 15% to 20% range and sees product sales in this category of approximately $1.5 million for the fiscal year ending June 30, 2009.
The company has a strong technical department and intends to increase its product development efforts in order to bring additional packaging products to the market in the coming quarters.
The new suppository composite film is manufactured at a 100,000 level GMP workshop using proprietary manufacturing techniques, and meeting all product quality requirements by ISO9001 standards.
The film product also has minimal environmental impact and has passed the ISO 14000 certification, exceeding China's State Drug and Food Administration standards.
The film product is smooth, easy to tear, shapes well for better performance, and is particularly suitable for temperature and humidity-sensitive packaging suppositories.
Dragon International's composite film has no unusual toxicity, and can be in direct contact with suppository medicines, with no physical and chemical effects.
This new composite film can also be applied to packaging for other drug formulations which are the same or similar to suppositories.
"Our new composite film expands Dragon's offerings as our pharmaceutical packaging initiatives continue to develop," says David Wu, Chairman of Dragon International.
"We are confident that our continued emphasis on our pharmaceutical family of packaging products will bring incremental revenue growth that should have a positive impact on our bottom line."
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