HONG KONG, Nov. 17, 2010 /PRNewswire-Asia/ -- Sihuan Pharmaceutical Holdings Group Ltd. (HKEx: 0460), a leading pharmaceutical company with the largest cardio-cerebral vascular drug franchise in China by market share, today announced that its wholly-owned subsidiary Hainan Sihuan Pharmaceutical Co., Ltd. has entered a distributorship agreement with Benxi Leilong Pharmaceutical Co., Ltd. with regard to Alprostadil Injection, one of the best-selling cardio-cerebral vascular drugs in China.
According to the agreement, the Company will have exclusive distribution rights for the drug for 30 years from 16 November, 2010 in Sihuan Pharmaceutical's distribution network of close to 10,000 hospitals in China. Benxi Leilong will sell the drug to the Company at a fixed wholesale price. Alprostadil Injection by Benxi Leilong is a leading intravenous injectable lipid emulsion for treatment of peripheral vascular diseases, cardio-cerebral microcirculation disorders and post-surgery thrombosis, which has better function and is more competitive than the traditional alprostadil products. According to MENET's data, currently the general alprostadil drugs rank as one of the best selling prescriptions for cardio-vascular disease in China; while the total sales of general alprostadil products were approximately RMB700 million in 2007 in China, according to Biao Dian Medical Data Company Limited (PICO).
Dr. Che Fengsheng, Chairman and CEO of the Company, said, "We believe that the obtaining of the distribution rights of Alprostadil Injection will further expand our existing product portfolio. It will also enable us to consolidate our strong market position and brand reputation. With the capability to effectively market and distribute the drug through our unique nationwide network, Sihuan Pharmaceutical should be able to generate a stable and substantial revenue stream from this distribution agreement."
Sihuan Pharmaceutical currently offers a portfolio of 14 cardio-cerebral vascular drugs, which are used for the treatment of a range of cardio-cerebral vascular diseases. The Company's best-selling cardio-cerebral vascular drugs, Kelinao, Anjieli and Chuanqing, collectively accounted for approximately 17.1% of the cerebral and peripheral vascular therapies market, the largest sub-segment of the cardio-cerebral vascular drug market in China in 2009. The Company generated a significant portion of revenue from the sales of cardio-cerebral vascular pharmaceutical products, which amounted to RMB560.6 million and RMB393.0 million in 2009 and the six months ended 30 June 2010 respectively, accounting for 79.1% and 83.0% of the total revenue, respectively.
