Company Receives Initial $3.7 Million Distribution Contract from Anhui Huayuan Pharmaceutical Co., Ltd.
CHENGDU, China, March 17 /Xinhua-PRNewswire-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc., (OTC Bulletin Board: TYNP), a manufacturer and supplier of modernized traditional Chinese medicine (“TCM”) based in Chengdu, China, today announced that the Company has been granted SFDA approval and is scheduled to launch Azithromycin Dispersible Tablets in the domestic market on April 15, 2008.
The manufacturing license for Azithromycin Dispersible Tablets is not only the first one Tianyin has received but also the first drug approval SFDA has granted to Sichuan Province in 2008. This is the third generic western medicine to be included in Tianyin’s product portfolio. The Company will continue to diversify its TCM products, with additional western medicines as they receive approvals for the 10 drugs that are currently in the SFDA pipeline.
Azithromycin is highly effective in treating upper and lower respiratory tract infections and other bacterial infections in skins and reproductive system. Ever since the drug’s first introduction, its sales have been growing steadily. Worldwide sales have grown from US$ 619 million in 1996 to $2.01 billion in 2003, representing a 32.6% growth over the previous year. Azithromycin has become a blockbuster product and is now among the TOP 50 prescription drugs in terms of global sales. It is estimated that approximately $350 million in total Azithromycin sales were generated in China during 2007.
“We are pleased to have the first of our pipeline products approved by the SFDA and believe that the launch of Azithromycin provides the opportunity for significant growth in both sales revenue and net profit in the coming years,” stated Dr. Guoqing Jiang, Chairman and CEO.
The largest domestic distributor of Azithromycin, Anhui Huayuan Pharmaceutical Co., Ltd. is currently one of Tianyin’s top strategic partners and has awarded the Company a $3.66 million distribution contract for 2008 covering most of the PRC for Azithromycin and other products. Margins associated with this product are in line with the Company’s blended average during the past year. This collaboration will help speed the market entry of Tianyin’s Azithromycin Dispersible Tablets and enable the Company to leverage its National SFDA manufacturing approval to gain market share throughout China.
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 34 modernized TCMs in the market, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance Program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 51 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 523 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 869 employees. Tianyin achieved revenue of $20.4 million and net income of $3.95 million in FY2007 ending June 30, 2007.
Safe Harbor Statement
The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s filings with the Securities and Exchange Commission.
For more information, please contact:
For the Company:
Allen Tang, Ph.D., MBA, Assistant to the CEO
China
Tel: +86-15821225642
Email: Allen.y.tang@gmail.com
Investors:
HC International, Inc.
Alan Sheinwald
Tel: +1-914-669-0222 (U.S.)
Email: Alan.Sheinwald@hcinternational.net
