Dragon announces new product launch; increase in annual production output capacity

Dragon announces new product launch; increase in annual production output
capacity

VANCOUVER, March 5 /PRNewswire-FirstCall/ - Dragon Pharmaceutical Inc.
("Dragon" or the "Company" TSX: DDD; OTCBB: DRUG; BBSE: DRP), a leading
international pharmaceutical company today announced the Company has increased
its annual production capacity for its core products 7ACA and Clavulanic Acid
by 30% and 56% respectively in order to meet increasing demand from its
customers. Meanwhile, two new products Ceftazidime and Cefalexin, which were
commercially launched in January 2008, have been added to Dragon's product
portfolio.
In October 2007, Dragon successfully adopted an enzymatic process to its
production of 7ACA. The enzymatic process is an environmentally friendly
technology and the Company is now in the process of converting its entire
production to incorporate this innovative technology. Once fully implemented,
Dragon expects to further increase its manufacturing capacity from the current
600 tons to 780 tons yearly. The process will lower production costs by
approximately 10% and additionally will reduce the amount of capital
investment pertaining to environmental issues.
Annual production capacity of Clavulanic Acid has also been increased from
50 tons to 78 tons as a result of the addition of a new 120 ton capacity
fermentor. As the first and largest producer of Clavulanic Acid in China,
Dragon's sales have increased dramatically, rising from 16 tons in 2005 to 39
tons in 2007.
With a core business strategy to become a leading vertically integrated
antibiotic drugs manufacturer, the Company will continuously broaden its
product portfolio. In January 2008, Dragon successfully launched two new
products, Ceftazidime and Cefalexin, to the Chinese market. Given the high
demand for these drugs in the Chinese market, these two products are expected
to become Dragon's growth driver in the coming years.
Ceftazidime is a third-generation cephalosporin antibiotic, a downstream
product for 7ACA, and has broad-spectrum activity against Gram-positive and
Gram-negative bacteria. Since Ceftazidime is effective against bacteria
resistant to Ampicillin and other cephalosporin drugs, the demand in Chinese
market has been increasing dramatically, with an average annual growth rate of
200% in the past few years. The Company's production output of Ceftazidime in
crude powder form is projected to be 100 tons in 2008 and most of the product
will be supplied to a long-term customer.
The Company has also introduced Cefalexin into its product portfolio.
Cefalexin is a first-generation cephalosporin antibiotic but its chemical
composition makes it effective in treatment of patients that show sensitivity
to penicillin drugs. Cefalexin is widely used to treat urinary tract
infections, respiratory tract infections, skin and soft tissue infections.
In support of strategies to expand Dragon's market share for antibiotic
formulation products in Chinese market, the Company is also pleased to
announce the appointment of Mr. Yimin Guo as the Vice President of Sales and
Marketing for Shanxi Weiqida Pharmaceutical Ltd, a wholly-owned subsidiary of
Dragon Pharma. Mr. Guo will oversee all sales and marketing activities in both
Chinese and international markets. Mr. Guo has over 20 years of extensive
sales and marketing experience and expertise in antibiotic drugs industry in
China. Prior to joining Dragon, Mr. Guo served as the Sales Director at Harbin
Pharmaceutical Group, the largest producer of antibiotic drugs in China. "We
are very pleased to have Yimin joining our executive management team," said
Dragon Chairman and CEO Mr. Yanlin Han. "Yimin's expertise in sales and
marketing, coupled with his depth of knowledge in the Chinese antibiotic
industry, will be invaluable to Dragon and will further bolster our strong
sales and marketing division. Dragon is experiencing rapid growth and we are
pursuing the goal of becoming a leading vertically integrated antibiotic drugs
manufacturer. We believe that Yimin will be a strong addition to our
leadership team as Dragon continues to execute growth strategies and create
value for shareholders."
About Dragon Pharmaceutical Inc.
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Dragon Pharmaceutical, headquartered in Vancouver, Canada, is a leading
manufacturer and distributor of a broad line of high-quality antibiotic
products including 7ACA, a key intermediate to produce cephalosporin
antibiotics, Clavulanic Acid and formulated cephalosporin antibiotic drugs.
Dragon is the third largest 7ACA producer and the first manufacturer and
market leader of Clavulanic Acid products in China. Dragon utilizes its
nationwide sales distribution network, close customer relationships,
understanding of local markets and customer needs and low cost structure to
outperform its international and domestic peers. With an annual capacity of
780 tons, Dragon is the largest exporter of 7ACA in China. To learn more about
Dragon Pharmaceutical Inc., please visit www.dragonpharma.com.
This press release contains forward looking statements, including but not
limited to, that the Company will continue to experience growth in sales of
its main products, that it will continue to be able to improve its production
technology and efficiency, that it will continue to achieve continuous growth
in business and profitability in the near future. These statements are subject
to certain risks and uncertainties that could cause actual results to differ
materially from those anticipated in the forward looking statements. Readers
should not place undue reliance on forward looking statements, which only
reflect the views of management as of the date hereof. The Company does not
undertake the obligation to publicly revise these forward looking statements
to reflect subsequent events or circumstances. Readers should carefully review
the risk factors and other factors described in its periodic reports filed
with the Securities and Exchange Commission.
CONTACT: Dragon Pharmaceutical Inc., Maggie Deng, Chief Operating Officer,
Telephone: (604) 669-8817 or North America Toll Free: 1-877-388-3784, Email:
irdragon@dragonpharma.com, Website: www.dragonpharma.com
SOURCE Dragon Pharmaceutical Inc.

Dragon Pharmaceutical Inc., Maggie Deng, Chief Operating Officer, Telephone:
(604) 669-8817 or North America Toll Free: 1-877-388-3784, Email:
irdragon@dragonpharma.com, Website: www.dragonpharma.com