Company Receives $2.78 Million Distribution Contract for Fiscal 2008
CHENGDU, China, April 2, 2008 /Xinhua-PRNewswire-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc., (OTC Bulletin Board: TYNP), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that the Company has formed a strategic distribution partnership with Sichuan Kelun Medicine & Trade Co., Ltd. ("Kelun Medicine") for the Fiscal Year of 2008.
In the agreement, Kelun Medicine will guarantee to distribute US$ 2.78 million (RMB 20 million) worth of Tianyin products within Sichuan Province between April 1, 2008 and March 31, 2009. This excludes the Company’s No. 1 selling proprietary drug Ginkgo Mihuan Oral Liquid for treatment of coronary heart diseases and myocardial infarction.
Kelun Medicine will delegate the sales & marketing campaigns for Tianyin products to the Sichuan Blue Sky Medical League, a drug distribution syndicate initiated and organized by Kelun Medicine. Sichuan Blue Sky Medical League has 108 members, all of which are pharmaceutical distribution enterprises within Sichuan Province except for one sole Chongqing-based distributor. The syndicate’s clout permeates through local city and county level markets of all sizes in the province.
To complement our growth, Tianyin Pharmaceutical is also accelerating the expansion pace of its direct sales force within the province. The Company plans to assign 15-20 business managers to specifically work with the 108 distributors. They will perform such routine service oriented tasks as maintaining business relationships, monitoring the product supply flow and destination, and organizing large scale product promotion meetings and events.
Furthermore, to ensure a smooth and successful implementation of this collaboration agreement with Kelun Medicine, Tianyin Pharmaceutical will install and designate its own end units for product promotions within the territories covered by each distributor. Currently, there are a total of 50-60 of these end units, which are effectively sales offices with 2-3 sales personnel. Such end units will make sure that the product marketing and promotion and post-sales follow-up and service are adequately reaching the intended end customers, which include retail pharmacy stores, small to medium sized healthcare providers, and rural clinics.
"We are very pleased to formalize this relationship with Kelun Medicine, a key strategic partner, which we believe helps us establish a strong foundation and conduit in which to increase our penetration in the Sichuan Province, a market where we recorded approximately $6 million in total sales last year. We view this as an important market for our Company and expect this partnership to provide the opportunity for significant growth in both revenue and net profit in the coming years," stated Dr. Guoqing Jiang, Chairman and CEO of Tianyin Pharmaceuticals.
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.
About Kelun Medicine
Sichuan Kelun Medicine & Trade Co., Ltd. is a wholly owned subsidiary of Sichuan Kelun Pharmaceutical Co., Ltd., the largest manufacturer and supplier of intravenous (IV) solution products in China, and also one of China’s top 50 pharmaceutical companies ranked by the China Pharmaceutical Industry Association. It was among first group of mega pharmaceutical sales companies in Sichuan Province that were granted GSP (Good Supply Practice) certification from China’s SFDA.
The total number of pharmaceutical product categories that Kelun Medicine distributes, including both Western drugs and traditional Chinese medicines, exceeds 16,000. Accordingly, Kelun Medicine is unanimously regarded in the domestic Pharma industry as the No. 1 logistic supply center for modern medicines in Western China.
Kelun Medicine also boasts one of the most extensive nation-wide pharmaceutical sales networks in China, comprising 53 exclusive principal regional sales agents with more than 2,500 sales persons who cover urban and rural areas throughout China. Kelun Medicine’s sales revenue surpassed US$ 360 million (RMB 2.6 billion) in 2005.
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
Tel: +86-15821225642 (China)
Email: Allen.y.tang@gmail.com
Investors:
HC International, Inc.
Alan Sheinwald
Tel: +1-914-669-0222 (U.S.)
Email: Alan.Sheinwald@hcinternational.net
