CHENGDU, China, Sept. 10 /PRNewswire-Asia-FirstCall/ - TianyinPharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier ofmodernized traditional Chinese medicine ("TCM") based in Chengdu, China, todayannounced that it has four products included in China's Essential Drug List(EDL) released by the Chinese government on August 18. The four genericproducts are Azithromycin Dispersible Tablets, Simvastatin Tablets, HuganTablets and Xiao Yan Li Dan Capsules and Tablets.
All the drugs in the Essential Drug List will be included in China's basichealth insurance catalog with a higher reimbursement percentage. Meanwhile,the pricing of the Essential Drugs will be decided by the governments throughpublic tender at the provincial level. The distribution of Essential Drugswill also be carried out through unified channels by either drug manufacturersor drug distributors. Companies winning the government tenders will have thepotential to significantly increase sales while margins on generic and morecommonly used drugs will see pricing control from the government.
As a result of this inclusion, management expects the sales of these fourdrugs could potentially increase from $6.1 million in fiscal year 2009 toapproximately $12 million in fiscal year 2010, which ends June 30, 2010.
"The release of China's essential drug list ensures that most ruralcitizens with comparatively low income will have access to cheap and safemedicines," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc.,commented. "We view this inclusion as an opportunity to significantlyincrease revenues generated from these products."
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional ChineseMedicine ("TCM") in China. It was established in 1994 and acquired by thecurrent management team in August 2003. It has a comprehensive productportfolio of 39 products, 22 of which are listed in the highly selectiveNational Medicine Catalog of the National Medical Insurance program. Tianyinowns and operates two GMP manufacturing facilities and an R&D platformsupported by leading Chinese academic institutions. The Company has apipeline of 40 pharmaceutical products pending approval. Tianyin has anextensive nationwide distribution network throughout China with a sales forceof 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Provincewith two manufacturing facilities and a total of 1,365 employees. Tianyinachieved revenue of approximately $33.5 million and net income ofapproximately $6 million in FY2008 ending June 30, 2008. For more informationabout Tianyin, please visit http://www.tianyinpharma.com .
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