Strategy Implemented to Further Diversify Customer Base and Optimize Distribution Channels
CHENGDU, China, Dec. 2 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc., (NYSE EuroNext: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced the implementation of a new sales and marketing strategy to categorize both distributors and hospital clients into three classes in order to optimize their sales and marketing structure.
The new strategy has classified distributors into three classes to optimize the clients from various distribution channels. The target goal is to develop 10 Class A nation-wide distributors with over $73.5 million annual sales, each which will contribute approximately 30% of Tianyin's annual sales, and 100 Class B distributors with annual sales between $29.4 million and $73.5 million each, which will contribute approximately 40% of annual sales. Class C distributors which have annual sales above $7 million and below $29.4 million, will be supplementary to class A and B clients and contribute approximately 30% of annual sales. The Company anticipates that this strategy will improve long-term relationships with strategic distribution partners, while optimizing and further diversifying the customer base.
The management also categorized hospital clients into three classes. Class A hospitals are university hospitals with superior reputations which have over $1.5 million of monthly medicine consumption; Class B hospitals have total monthly medicine consumption between $1 million and $1.5 million, while Class C hospitals have total monthly medicine consumption between $0.5 million and $1 million. The sales team will mainly focus and spend most of their efforts on Class A and Class B hospitals to generate major sales, but will dedicate some time to Class C hospitals. The Company expects that sales from Class B and Class C hospitals could be favorably promoted by the relations established with major Class A hospitals and help to further penetrate targeted markets.
Dr. Jiang Guoqing, Tianyin's Chairman and Chief Executive Officer, said, "We continue to strengthen our sales and marketing efforts. Sales and marketing is a key to building a strong, reliable brand name and we continue gaining market share by being better than our competitors in both departments. By properly deploying and focusing the Company's sales team, we have already begun to see the economic benefits of this strategy."
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 33 modernized TCMs and 5 generic western medicines 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 47 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma.com .
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: +86-158-2122-5642
Email: Allen.y.tang@gmail.com
Investors:
HC International, Inc.
Alan Sheinwald
US
Tel: +1-914-669-0222
Email: Alan.Sheinwald@hcinternational.net
