Tianyin Pharmaceutical Co., Inc. Expects to Benefit from the Recently Published Guide to Pricing Reform for Medicine and Medical
10 February 2010 - 12:30AM
PR Newswire (US)
Key Government Objectives aimed to align prices with the quality of
medications while accelerating growth for Chinese Traditional
Medicines CHENGDU, China, Feb. 9 /PRNewswire-Asia-FirstCall/ --
Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer
and supplier of modernized traditional Chinese medicine ("TCM") and
Western Pharmaceuticals based in Chengdu, China, today announced
that it expects operational benefits from the recently published
Guide to Reform of Pricing Mechanism of Medicine and Medical
Services by the Chinese government. On November 9, 2009, the
Chinese National Development and Reform Commission, the Ministry of
Health, and the Ministry of Human Resource and Social Security
released a comprehensive Guide proposed to protect and foster the
development of Chinese Medicine, which is aimed at benefiting the
pharmaceutical companies focusing on specialized Chinese medicines
like Tianyin Pharmaceuticals. The Guide requires that the pricing
of medicine and medical services should reflect the quality
differential. As such, the government will support higher sales
prices set by the overall market for pharmaceutical companies which
develop specialized products with strong efficacy for specific
indications. The Guide also defined maximum profit margins for
national and local distributors, which will further reduce the
overall distribution costs of medicine and improve margins for the
producers. "We have spent considerable resources analyzing all
aspects and implications of the new pricing mechanism Guide and are
confident that Tianyin's portfolio will enjoy enhanced pricing as
the benefits of several of our leading proprietary TCM products are
well recognized by the marketplace," Dr. Jiang, Chairman and CEO of
Tianyin Pharmaceutical Co., Inc., commented. "In addition, the
Guide requires uniform pricing for all generic medicine which we
believe will help us improve our gross margins through effective
cost management and production efficiencies as overall production
volumes increase. In addition, the Guide encourages new product
innovation by allowing higher profit margins for companies like
Tianyin who are focused on developing and commercializing
differentiated drugs that meet consumer needs." The Company has 23
drugs which are currently reimbursed by government medical
insurance. 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. Tianyin currently has 48 SFDA
approved products, 41 which are manufactured and marketed. 22 of
these products 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
also maintains a pipeline of 17 pharmaceutical products pending
approval. Tianyin has an extensive nationwide distribution network
throughout China with a sales force of 730 salespeople. The Company
is headquartered in Chengdu, Sichuan Province with two
manufacturing facilities and a total of 1,365 employees. 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: Investors: Mr. Matthew Hayden, HC
International Tel: +1-561-245-5155 Email: DATASOURCE: Tianyin
Pharmaceutical Co., Inc. CONTACT: Allen Tang, Ph.D., MBA, Assistant
to the CEO China, +86-158-2122-5642, ; or investors, Matthew Hayden
of HC International, +1-561-245-5155, Web site:
http://www.tianyinpharma.com/
Copyright