7-6-10 The Small Cap Market Update from Express IR

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President Ronald Reagan once said the nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’ Well the business prevention team is at it again. Last week Nancy Pelosi said “unemployment benefits create more jobs than any other initiative”. Huh? The people that led us into this near abyss are the same one’s trying to lead us out. Why don’t I feel any better?

According to the Office of Advocacy of the Small Business Administration which measures such things, more than half of working Americans’ were employed by businesses with less than 500 employees. Small companies create more jobs than either large companies or the federal government. At least that’s what their data says.

The best ways to start and sustain an economic recovery is to create an environment which encourages start-ups and existing small businesses to thrive. Eliminate barriers to entry. Reduce taxation for the first 3-5 years, relax government regulation on business’ that create certain numbers of jobs, give small business’ preferential treatment when bidding on government contracts. But the best way to support small companies is to encourage public and private investment. Preferential capital gains and venture capital treatment for providing capital to small business’ is a start. Reducing, not increasing, regulation for accredited investors to participate in small company investment is another initiative that is worth investigating.

Unfortunately, our political leadership seems hell bent on the 2000 page Financial Reform bill and bone-headed notions like “unemployment benefits create more jobs than any other initiative”. We may have to go this next economic recovery without them.

The great money manager Peter Lynch of Fidelity Magellan Fund fame, once said when researching investment ideas he looked for companies with simple models and good products. He looked for companies that would succeed even if an idiot was running it.  Because one day, an idiot would be running it.

I guess that shows you how good a model our country is, because it seems like idiots are running it most of the time.

Today’s Markets

The trading week was greeted with a rally Tuesday morning as all major indexes are up in early trading as investors try to recover some of the big losses in recent weeks following a string of disappointing economic reports.

The Tuesday rally comes ahead of a report that is expected to show the service sector expanded last month, but not quite as fast as in May. Investors have been selling off stocks as economic reports paint a mixed picture of the economy. Reports are still indicating growth, but not nearly at the pace traders had expected.

Dow Jones industrial average was up 108 points, or 1.1%, shortly after the opening bell. The S&P 500 rose 12 points, or 1.2%, and the Nasdaq composite gained 34 points or, 1.6%.

Today’s Top Performers on the OTCBB

Tuesday’s Newsmakers

Sinobiopharma Announces Distribution Contracts for Flagship Product Totaling US$8.4 Million
Jul. 6, 2010 (GlobeNewswire)

Company’s Formulation of Cisatracurium Besylate is Now Used in More Than 1,000 Hospitals in China

NANTONG CITY, China, July 6, 2010 (GLOBE NEWSWIRE) — Sinobiopharma, Inc. (OTCBB:SNBP) (“Sinobiopharma” or the “Company”) is pleased to announce that in the first calendar quarter of 2010 it has signed 30 distribution contracts with distribution agents totaling US$8.4 million for 2010 for distribution of its flagship product KuTai, a patented formulation of Cisatracurium Besylate that is one of the top-selling pre-surgical skeletal muscle relaxants in China. KuTai distributors have coverage in more than 30 provinces throughout China and in most major cities.

As a pioneer injectable Cisatracurium Besylate manufactured in China, KuTai quickly became one of the leaders among skeletal muscle relaxants in the domestic market soon after it was introduced in 2006. KuTai is not only lower in cost than GlaxoSmithKline’s (GSK) Nimbex injection but is also the only Cisatracurium Besylate that can be stored at room temperature. The low cost and high convenience makes KuTai a more attractive choice for hospitals and doctors.

The success of KuTai underscores the soundness of Sinobiopharma’s expansion strategy, which includes expanding its drug pipeline and advancing the development of innovative drugs that will consolidate the Company’s leadership position in its chosen therapeutic areas.

“We believe that as a pioneer drug in China, KuTai enjoys the benefit of having a government sanctioned price premium as well as certain exclusive marketing rights to hospitals,” said Dr. Lequn Lee Huang, the Company’s CEO. “We expect that revenue and net profit will increase considerably in 2010, not only because of our marketing efforts, but also because healthcare reform is accelerating the growth of market demand for pharmaceuticals.”

About Sinobiopharma

Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, one of the world’s fastest growing pharmaceutical markets. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company’s current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. For additional information, visit the Company’s website at: www.sinobp.com.

FORWARD LOOKING STATEMENTS
This news release may include “forward-looking statements” regarding Sinobiopharma, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiopharma, Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiopharma, Inc. does not undertake any obligation to update any forward looking statement, except as required under applicable law.

CONTACT: 
Sinobiopharma, Inc.
Investor Relations86-25-58061579

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Contact: Ralph Sharp               
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