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Guangzhou Konzern entered into a two-year Distribution and SupplyAgreement of Levocarnitine ("Agreement") with RG Pharmaceutica (Pvt.) Ltd.("RGP"), a Pakistani pharmaceutical distributor. The agreement stipulates thatRGP will be responsible for the product registration, importation andmarketing within the territory of Pakistan. Levocarnitine is used to treatcoronary heart disease and acute myocardial infarction. Currently, there areno pharmaceutical products similar to Levocarnitine in Pakistan, and thepotential market for Levocarnitine in Pakistan is estimated at 2 million vialsper year.
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China Medicine expects to launch Levocarnitine in Pakistan in January 2010.The Company expects to ship approximately 100,000 vials of Levocarnitinewithin the first year of entering the market in Pakistan and estimates thatgross margin for the product will not be less than 65%. Levocarnitine ismanufactured by Guangzhou Lifetech Pharmaceutical Co., Ltd. in China("Lifetech"). Lifetech is Guangzhou Konzern's exclusive Original EquipmentManufacturer ("OEM"). Guangzhou Konzern distributed Levocarnitine in China inthe years of 2008 and 2007, which generated revenues of $1,470,333 and$1,253,185 and gross profits of $570,074 and $473,006.
"We are excited to be able to export our OEM manufactured Levocarnitinepowder injection to Pakistan, marking a major milestone for our company inentering this overseas pharmaceutical market," commented Mr. Senshan Yang,Chairman and CEO of China Medicine. "In addition, we believe our strategicmove to tap into the international pharmaceutical market overall will increaseour profitability and maximize shareholder value."
About China Medicine Corporation
China Medicine Corporation is a leading pharmaceutical company thatresearches and develops medical formulations and distributes over 2,200pharmaceutical products in China including prescription and over the counter("OTC") drugs, traditional Chinese medicine products, herbs anddietary-supplements. The Company distributes its products to more than 300hospitals, 500 medicine companies, and 1,788 drug stores through wholesaledistributors in 28 provinces throughout China. The Company actively develops anumber of proprietary products for a variety of uses, including oncology, highblood pressure and the removal of toxins from food and animal feeds. For moreinformation visit the Company's website at http://www.chinamedicinecorp.com .
Cautionary Statement
This press release contains forward-looking statements concerning theCompany's business and products. The Company's actual results may differmaterially depending on a number of risk factors including, but not limited to,the following: general economic and business conditions, obtaining regulatoryapproval for new products, the expected contribution of higher margin products,government support for rural health care, competition from existing and newcompetitors, changes in technology, and various other factors beyond itscontrol. All forward-looking statements are expressly qualified in theirentirety by this Cautionary Statement and the risk factors detailed in theCompany's reports filed with the Securities and Exchange Commission. ChinaMedicine Corporation undertakes no duty to revise or update anyforward-looking statements to reflect events or circumstances after the dateof this release.For more information, please contact: Company Contact: Mr. Richard Wu Chief Financial Officer China Medicine Corporation Tel: +86-20-8737-2231 Email: [email protected] Investor Relations Contact: Mr. Crocker Coulson, President CCG Investor Relations Tel: +1-646-213-1915 (NY Office) Email: [email protected] Web: http://www.ccgirasia.com
SOURCE China Medicine Corporation
