Renhuang Announces New Medical Reform Sales Department in Heilongjiang
HARBIN, China, April 14 /PRNewswire-Asia-FirstCall/ -- Renhuang Pharmaceuticals, Inc. (Pink Sheets: RHGP) ("Renhuang" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), today announced that the Company has successfully completed setting up a distribution network for its new Medical Reform Sales Department in Heilongjiang Province.
Renhuang's Medical Reform Sales Department will be involved in bidding on National Essential Drugs Procurement contracts under China's healthcare reform initiatives. The Company's new distribution network is expected to come into operation by May 2010 and will initially cover 12 prefecture-level cities in Heilongjiang province. Renhuang estimates its Medical Reform Sales Department will contribute approximately $0.6 million in revenue in Heilongjiang Province for fiscal year 2010.
In 2009, the Chinese government established the National Essential Drug List, a formulary which covers pharmaceuticals used to treat up to 80 percent of the most common diseases in China. According to the Chinese government's healthcare reform plan, all drugs on the National Essential Drugs List will be covered under the government-supported basic insurance plan and the government-funded healthcare providers are required to use these drugs. These drugs must be purchased in accordance with the regulations set by the centralized provincial drug procurement agencies and suppliers must be selected through a province-wide online public bidding process.
"I am pleased to announce that we have already won contracts under the National Essential Drugs Procurement for our natural antibiotic products, Shengmai Granules and Banlangen Granules," said Mr. Shaoming Li, Chairman and CEO of Renhuang. "The Medical Reform Sales Department will serve as a dedicated resource focused on developing our business and we will continue to grow this department to capitalize on the tremendous growth opportunities available under China's healthcare reform initiatives."
ABOUT RENHUANG PHARMACEUTICALS, INC.
Renhuang Pharmaceuticals, Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China.
Safe Harbor Statement
This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company's ability to achieve its financial guidance, ability to list its shares on a senior stock exchange, ability to manage expansion of its operations effectively, competition in the marketing and sales of its products, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.
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SOURCE Renhuang Pharmaceuticals, Inc.