BMP Sunstone (BJGP) 8-K BMP Sunstone Reports Second Quarter 2010 Financial Results

Exhibit 99.1

BMP Sunstone Reports Second Quarter 2010 Financial Results

Revenue Increases 25.8% to $40.9 Million in the Quarter

Adjusted EBITDA of $4.3 Million in the Quarter, and $8.9 Million in the First Six Months of 2010

Company Reiterates 2010 Financial Guidance

PLYMOUTH MEETING, PA., August 9, 2010 (BUSINESS WIRE) – BMP Sunstone Corporation (NASDAQ: BJGP) (“BMP Sunstone” or the “Company”) today announced financial results for the second quarter ended June 30, 2010.

• Revenue increased to $40.9 million from $32.5 million in the prior year period, an increase of 25.8%.

• Gross profit rose to $18.7 million from $14.4 million in the second quarter of 2009, coupled with gross margin expansion to 45.7% from 44.3% in the prior year period.

• Operating income grew substantially to $2.3 million from $93,000 in the prior year period.

• Adjusted EBITDA was $4.3 million compared to $1.7 million in the prior year period. Non-GAAP net income was $2.2 million, or $0.05 per diluted share, compared to $300,000, or $0.01 per diluted share, in the second quarter of 2009.

David Gao, Chief Executive Officer of BMP Sunstone, stated, “We are delighted to see the initial benefits of the organizational changes we made earlier in the year. With Mr. Tong at the helm, our manufacturing business is now operating with increased efficiency, particularly within our sales and marketing department, where the reorganization helped drive increased sales of Sunstone’s products. We also are starting to see improved margin performance in our distribution business as we continued our push to focus on higher margin products. The managerial and operational improvements we made in the first half of the year are proving to be worthwhile, and we are optimistic about our ability to continue strong growth of revenue and profit for our shareholders in the back part of the year.”

Second Quarter 2010 Financial Results

Revenue in the second quarter of 2010 increased 25.8% to $40.9 million from $32.5 million in the second quarter of 2009. Revenue from manufacturing was $22.5 million, up 33.8% from the prior year period, reflecting continued demand for the Company’s leading products and the initial benefits of the salesforce reorganization completed earlier in the year. Additionally, as of the first quarter of 2010, financial contributions from Sunstone Shengda Zhangjiakou Pharmaceutical Co., Ltd., were consolidated in the Company’s manufacturing division and accounted for $1.9 million. Revenue from licensed products increased 24.8% year over year to $1.9 million, primarily due to successful sales and marketing efforts for Propess, Anpo and Ferriprox and further hospital coverage expansion. Revenue from distribution was $16.4 million, up 16.3% on a year over year basis.

Gross profit in the second quarter of 2010 increased to $18.7 million from $14.4 million in the second quarter of 2009. Gross margin was 45.7%, compared to 44.3% in the prior year period. Gross margin performance was driven by increased sales of manufactured and licensed products, which carried gross margins of 71.7% and 64.6% respectively. Additionally, revenue mix in the second quarter of 2010 reflects anticipated seasonality in Sunstone’s business, as well as improved gross margin performance in the distribution business, as management continued its plan to proactively cease distribution of certain low margin wholesale products. Revenue from distribution contributed to a higher portion of total revenue than in the first quarter of 2010, and did so at a gross margin of 7.9%, up from 7.6% in the first quarter of 2010.

The Company’s operating income increased to $2.3 million in the second quarter of 2010 from $93,000 in the second quarter of 2009. The Company’s sales and marketing expenses, particularly at Sunstone, as well as general and administration expenses, were closely aligned with revenue performance in the second quarter of 2010. Operating expenses include approximately $821,000 of purchase accounting adjustments related to prior acquisitions, as well as approximately $491,000 of stock compensation expense, which reflects fewer options granted to senior management and board members on a year over year basis. Excluding purchase accounting adjustments and stock compensation, non-GAAP operating income improved 138.0% to $3.8 million from $1.6 million in the prior year period.

Adjusted EBITDA was $4.3 million in the second quarter of 2010, compared to $1.7 million in the second quarter of 2009. Improvement in adjusted EBITDA performance reflects enhanced revenue performance and operational efficiencies across the Company.

Non-GAAP net income was $2.2 million, or $0.05 per diluted share, compared to $300,000, or $0.01 per diluted share, in the second quarter of 2009. On a GAAP basis, the Company reported net income of $660,000, or $0.02 per diluted share, compared to a net loss of $1.7 million, or ($0.04) per diluted share, in the second quarter of 2009. The earnings per share calculation is based on 51.1 million diluted shares outstanding, compared to 50.7 million diluted shares outstanding in the prior year period.

Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Please refer to the financial tables provided in this news release for a reconciliation of GAAP results to non-GAAP results for the three month periods ended June 30, 2010 and 2009.

Balance Sheet

The Company paid down roughly $2.4 million of bank debt during the quarter, while keeping cash and cash equivalents fairly consistent with prior quarters, at $22.3 million as of June 30, 2010. The Company had cash and cash equivalents of $23.0 million at March 31, 2010, and ended 2009 with approximately $21.5 million in cash and cash equivalents. As of June 30, 2010, and including notes receivable of $15.1 million, total cash and cash equivalents including notes receivable totaled $37.4 million. Notes receivables from customers for the settlement of trade receivable balances are guaranteed by established banks in China and have maturities of six months or less.

First Half 2010 Financial Results

For the six months ended June 30, 2010, revenue increased 11.3% to $79.9 million from $71.7 million in the first six months of 2009. During this same time period, gross profit increased 13.2% to $39.7 million from $35.1 million. Income from operations increased 60.9% to $5.3 million, compared to $3.3 million in the first six months of 2009. Adjusted EBITDA was $8.9 million in the first six months of 2010, compared to $6.3 million in the prior year period. Non-GAAP net income was $4.8 million, or $0.11 per diluted share, compared to $3.3 million, or $0.08 per diluted share, in the prior year period. On a GAAP basis, net income was $1.3 million, or $0.03 per share, compared to a net loss of $3.7 million, or ($0.09) per share, in the first six months of 2009. The EPS calculation is based on 51.0 million diluted shares outstanding, compared to 46.9 million diluted shares outstanding in the prior year period.

Full Year 2010 Financial Guidance

The Company continues to expect revenue to reach between $160 million and $170 million in fiscal 2010. Additionally, during fiscal 2010, the Company continues to expect adjusted EBITDA to reach between $16 million and $17 million and non-GAAP net income to reach between $9 million and $10 million.

Conference Call

The Company will hold a conference call at 5:00 pm ET on August 9, 2010 to discuss its results. Listeners may access the call by dialing 1-866-713-8310 or 1-617-597-5308 for international callers, access code: 12154394. Preregistration and a webcast will be available through the Company’s website at www.bmpsunstone.com. A replay of the call will be accessible through August 16, 2010 by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 59487271.

About BMP Sunstone Corporation

BMP Sunstone Corporation is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Through Sunstone the Company manufactures leading pediatric and women’s health products, including two of China’s most recognized brands, “Hao Wawa” and “Confort,” sold in pharmacies throughout the country. The Company also markets a portfolio of products under exclusive multi-year licenses into China, primarily focused on women’s health and pediatrics, as well as provides pharmaceutical distribution services through subsidiaries in Beijing and Shanghai. BMP Sunstone’s main office is in Beijing, with a U.S. office in Plymouth Meeting, PA. For more information, please visit www.bmpsunstone.com.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning, the Company’s expected financial performance in fiscal 2010 and the Company’s expectations for its business units in fiscal year 2010. These statements are subject to uncertainties

and risks including, but not limited to, the impact from the Company’s recent organizational changes, changes in the Company’s sales, marketing and distribution plans, changes in the Company’s operating performance, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Company’s products and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

CONTACT

ICR, LLC

(Investor Relations)

Ashley M. Ammon 646-277-1227

or Christine Duan 203-682-8200

BMP Sunstone Corporation and Subsidiaries

Condensed Consolidated Statements of Operation

($ amounts, except per share amounts in thousands)

	For the Three months ended June 30,						For the Six months ended June 30,
	2010			2009			2010			2009
Revenues:
Third parties	$	40,863		$	32,123		$	79,879		$	67,644
Related parties		—			360			—			4,102
Total Revenues		40,863			32,483			79,879			71,746
Cost of Goods Sold		22,188			18,089			40,212			36,694
Gross Profit		18,675			14,394			39,667			35,052
Sales and Marketing Expenses		11,768			10,300			23,938			23,811
General and Administrative Expenses		4,589			4,001			10,400			7,930
Total Operating Expenses		16,357			14,301			34,338			31,741
Profit From Operations		2,318			93			5,329			3,311
Other Income (Expense):
Interest Income		53			84			100			108
Interest Expense		(995	)		(1,058	)		(2,347	)		(2,475	)
Debt Issuance Cost Amortization		(109	)		(97	)		(235	)		(225	)
Equity Method Investment Income		—			65			—			82
Loss on Early Extinguishment of Debt		—			—			—			(4,573	)
Gain on Derivatives		—			(447	)		—			1,204
Total Other Expense		(1,051	)		(1,453	)		(2,482	)		(5,879	)
Profit (Loss) Before Provision For Income Taxes		1,267			(1,360	)		2,847			(2,568	)
Provision For Income Taxes		669			372			1,585			1,154
Net Profit (Loss)	$	598		$	(1,732	)	$	1,262		$	(3,722	)
Less: Net Profit Attributable to the Noncontrolling Interest		62			16			23			16
Net Profit (Loss) Attributable to BMP Sunstone Corporation	$	660		$	(1,716	)	$	1,285		$	(3,706	)
Basic and Fully-Diluted Profit (Loss) Per Share Attributable to BMP Sunstone	$	0.02		$	(0.04	)	$	0.03		$	(0.09	)
Basic Weighted-average Shares Outstanding		42,145			41,539			42,055			41,154
Fully Diluted Weighted-average Shares Outstanding		51,062			50,699			51,022			46,875

BMP Sunstone Corporation and Subsidiaries

Condensed Consolidated Statements of Operation

($ amounts, except per share amounts in thousands)

Non GAAP

	For the Three months ended June 30,						For the Six months ended June 30,
	2010			2009			2010			2009
Revenues:
Third parties	$	40,863		$	32,123		$	79,879		$	67,644
Related parties		—			360			—			4,102
Total Revenues		40,863			32,483			79,879			71,746
Cost of Goods Sold		22,024			17,974			39,884			36,464
Gross Profit		18,839			14,509			39,995			35,282
Sales and Marketing Expenses		10,947			9,547			22,307			22,332
General and Administrative Expenses		4,078			3,359			9,020			6,684
Total Operating Expenses		15,025			12,906			31,327			29,016
Profit From Operations		3,814			1,603			8,668			6,266
Other Income (Expense):
Interest Income		24			46			40			70
Interest Expense		(995	)		(1,058	)		(2,347	)		(2,025	)
Equity Method Investment Income		—			65			—			82
Total Other Expense		(971	)		(947	)		(2,307	)		(1,873	)
Profit Before Provision For Income Taxes		2,843			656			6,361			4,393
Provision For Income Taxes		669			372			1,585			1,154
Net Profit	$	2,174		$	284		$	4,776		$	3,239
Less: Net Profit Attributable to the Noncontrolling Interest		62			16			23			16
Net Profit Attributable to BMP Sunstone Corporation		2,236			300			4,799			3,255
Basic and Fully-Diluted Profit Per Share Attributable to BMP Sunstone	$	0.05		$	0.01		$	0.11		$	0.08
Basic Weighted-average Shares Outstanding		42,145			41,539			42,055			41,154
Fully Diluted Weighted-average Shares Outstanding		51,062			50,699			51,022			46,875

BMP Sunstone Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

($ amounts in thousands)

	June 30, 2010			December 31, 2009
Assets
Current Assets:
Cash and Cash Equivalents	$	22,284		$	21,544
Restricted Cash		1,125			1,125
Notes Receivable		15,087			17,541
Accounts Receivable, net of allowance for doubtful accounts of $771 and $481		47,590			37,752
Inventory, net of allowance for obsolescence of $178 and $98		10,461			9,811
Receivable from Alliance Unichem		—			7,550
Other Receivables		3,634			3,648
VAT Receivable		1,009			1,093
Prepaid Expenses and Other Current Assets		7,336			6,322
Total Current Assets	$	108,526			106,386
Property and Equipment, net		31,492			30,967
Investment in Shengda		—			2,950
Investments at Cost		367			146
Goodwill		70,317			70,033
Other Assets		327			405
Land Use Rights, net of accumulated amortization		2,991			2,860
Intangible Assets, net of accumulated amortization		39,980			38,508
Total Assets	$	254,000		$	252,255
Liabilities and Equity
Current Liabilities:
Notes Payable and Bank Borrowings	$	2,791		$	6,406
Accounts Payable		24,047			24,465
Due to Related Parties		1,315			1,437
Deferred Revenues		128			208
Accrued Expenses		20,521			18,478
Total Current Liabilities		48,802			50,994
Long-Term Debt, including debt premium		33,991			36,749
Deferred Taxes		8,834			9,097
Total Liabilities		91,627			96,840
Commitment and Contingencies		—			—
Equity:
Common Stock, $.001 Par Value; 75,000,000 and 50,000,000 Shares; 42,145,320 and 41,931,987 Shares Issued and Outstanding as of June 30, 2010 and December 31, 2009, respectively		42			42
Additional Paid in Capital		170,722			168,772
Common Stock Warrants		8,621			8,621
Accumulated Deficit		(31,661	)		(32,946	)
Accumulated Other Comprehensive Income		10,235			9,486
Total BMP Sunstone Corporation Stockholders’ Equity		157,959			153,975
Non controlling Interest		4,414			1,440
Total Liabilities and Equity		254,000		$	252,255

BMP Sunstone Corporation and Subsidiaries

Non GAAP Reconciliations

($ amounts, except per share in thousands)

	Three months ended June 30,					Six months ended June 30,
	2010		2009			2010		2009
GAAP Gross Profit	$	18,675	$	14,394		$	39,667	$	35,052
Amortization Related to Acquisition		164		115			328		230
Non GAAP Gross Profit	$	18,839	$	14,509		$	39,995	$	35,282
	Three months ended June 30,					Six months ended June 30,
	2010		2009			2010		2009
GAAP Operating Income	$	2,318	$	93		$	5,329	$	3,311
Stock Based Compensation		491		599			1,341		1,184
Amortization Related to Acquisitions		1,005		911			1,998		1,771
Non GAAP Operating Income	$	3,814	$	1,603		$	8,668	$	6,266
	Three months ended June 30,					Six months ended June 30,
(all amounts in $000)	2010		2009			2010		2009
GAAP Net Income (Loss)	$	660	$	(1,716	)	$	1,285	$	(3,706	)
GAAP Basic and Fully Diluted EPS	$	0.02	$	(0.04	)	$	0.03	$	(0.09	)
Stock Based Compensation		491		599			1,341		1,184
Debt Discount and Premium Amortization and Issuance Cost		80		59			175		637
Amortization Related to Acquisitions		1,005		911			1,998		1,771
Loss on Early Extinguishment of Debt		—		—			—		4,573
Gain (Loss) on Derivatives		—		447			—		(1,204	)
Non GAAP Net Income	$	2,236	$	300		$	4,799	$	3,255
Non GAAP EPS	$	0.05	$	0.01		$	0.11	$	0.08

BMP Sunstone Corporation and Subsidiaries

Adjusted EBITDA Reconciliation

($ amounts in thousands)

	For the Three months ended June 30,					For the Six months ended June 30,
(all amounts in $000)	2010		2009			2010		2009
Net Income (Loss)	$	660	$	(1,716	)	$	1,285	$	(3,706	)
Net Income Reconciliation to Adjusted EBITDA:
Interest expense, net		1,048		1,019			2,384		1,962
Income taxes		669		372			1,585		1,154
Depreciation		796		631			1,516		1,153
Amortization of intangibles and fair value of inventory increase		1,005		911			1,998		1,771
Loss on Early Extinguishment of Debt		0		—			—		4,573
Gain on derivatives		0		447			—		(1,204	)
Amortization of debt discount and debt issuance costs		80		59			175		636
ADJUSTED EBITDA	$	4,258	$	1,723		$	8,943	$	6,339