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Tianyin Pharmaceutical's Ginkgo Mihuan Oral Solution Wins Critical Government Tenders in Four Provinces

2008-05-13 02:36 1998

CHENGDU, China, May 13 /Xinhua-PRNewswire/ -- 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 won official government tenders for its proprietary Ginkgo Mihuan Oral Solution in Liaoning, Guangxi, Yunnan, and Shanxi province in China. The centralized tendering procurement system operates in two ways. First, several hospitals and medical institutions join together to invite tenders from pharmaceutical manufactures and distributors, which are based on price. Second, they appoint qualified agents to handle tenders who are prohibited from having ties with the industry regulatory or administrative bodies to determine who will be awarded the tenders. The majority of public hospitals at the county or above level have implemented this system.

This successful tender gives Ginkgo Mihuan priority to be prescribed and used over the eight other competing products in the marketplace by hospitals in these four provinces. The winning price is approximately $3.67 per 10*10 ml package and $4.08 per 12*10 ml package. This is the Company's fourth drug which has received government tenders in addition to its Arpu Shuangxin, Granule Baoxinning Capsules, and Radix Sophorae Flavescentis Vaginal Effervescent Tablets.

Ginkgo Mihuan Oral Solution is a Traditional Chinese Medicine (TCM) which is highly effective in treating sequelas of Cerebral thrombosis coronary heart diseases and myocardial infarction. The drug was Tianyin Pharmaceutical's No. 1 selling drug in 2007 and contributed approximately 31 percent of the Company's 2007 fiscal revenue. The Company's estimates that its Ginkgo Mihuan Oral Solution currently maintains over 80 percent of the Compound Ginkgo prescription market and approximately 0.23 percent of the heart disease market in China, which is estimated to be an addressable market of approximately $4.3 billion annually (source: Southern Pharmaceutical Economic Research Institute).

"We are very pleased to announce four major provincial governments' tenders for our flagship product Ginkgo Mihuan Oral Solution as our focused sales and marketing efforts have successfully created awareness among many provincial pharmaceutical markets. The tenders enable us to immediately leverage our current production capacity and established distribution channels to capture additional market share. We expect Ginkgo Mihuan Oral Solution will continue to be our flagship product and a significant contributor to our growth during fiscal 2008," commented Dr. Guoqing Jiang, Chairman and CEO.

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.

Source: Tianyin Pharmaceutical, Co., Inc.
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