First China Pharma Foresees Strong Year of Growth Ahead

February 28, 2011 |

5 min read

HONG KONG--(Marketwire - February 28, 2011) - First China Pharmaceutical Group, Inc. (OTCBB: FCPG) (“First China” or the “Company”), a rapidly growing pharmaceutical distribution company headquartered in Yunnan, China, is pleased to announce that the Company recently brought together all key managers and employees for a day long series of meetings aimed at reviewing recent events and to put forward and discuss plans for the last quarter of fiscal 2010 (ending March 31, 2011) and fiscal 2011 (ending March 31, 2012).

During the meetings it was clearly identified that the Company intends to capitalize on its recent achievements in order to secure additional funding. Management has projected that capital investment will permit the Company to rapidly increase its product line from the existing threshold of 5,000 products to over 30,000 items. This increase, management believes, combined with infrastructural investments and increases in marketing and advertising could result in $50 million in sales from its XYT subsidiary alone in the next 12 months, with potentially $100 million in sales projected over 24 months.

Perhaps most importantly, the Company believes that real growth will come as a result of its ability to close timely acquisition agreements allowing for the widespread national proliferation and replication of First China’s business model throughout China. Many of the acquisitions targeted boast sales in the range of US$10 million to US$40 million. Management believes that if the Company successfully completes some of these acquisitions, it could lead to an additional US$25-75 million in sales within 12 months of their respective closings.

In a summary of achievements, it was noted that in the short period since the Company acquired Kun Ming Xin Yuan Tang Pharmacies Co., Ltd. (XYT) last September 15th, First China has rapidly gone on to meet or exceed all its initial goals with the signing of 17 new Hospital distributor agreements, acquire two exclusive drug distributorship agreements, initiate plans for the acquisition of the high profile De Xin Pharmacy with plans to convert it into a flagship retail distribution outlet, launched expansion plans outside Yunnan Province by entering into pending agreements to acquire a strategically located distributor, Shandong Run Kang Pharmaceutical Co. Inc., and set out to expand core facilities and hire new employees to assist sales, logistics and management growth needs.

First China’s Chairman and CEO Zhen Jiang Wang comments, “Our meetings were extremely positive and the excitement was palpable. It was clear to everyone that our recent achievements should be perceived against the unexpected and unprecedented Government Health Care reforms instructing institutional health care providers to rapidly move towards agreements with large volume pharmaceutical distributors like First China. Additional initiatives introducing new policies to encourage private funds, including overseas capital, to be channeled into the medical sector have generated extraordinary optimism and opportunities in the sector and Company management extensively discussed participation plans towards developing a leadership role in the growing marketplace.”

Details of the company’s business, finances, appointments and agreements can be found as part of the Company’s continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) EDGAR database.

About First China Pharmaceutical Group, Inc. (OTCBB: FCPG)
First China Pharmaceutical Group, Inc. aims to develop a high growth pharmaceutical distribution company generating significant revenue from the sale of healthcare products in China. As part of its business strategy, the Company has acquired the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT), which includes a strategic advantage over its competitors as it is believed to be one of a limited number of pharmaceutical distribution companies in Yunnan Province that has obtained government approval to fulfill orders over the internet. First China Pharmaceutical Group plans to continue the rapid growth of the company from its current position as a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China’s Yunnan Province. For more information visit: www.firstchinapharma.com

Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD
First China Pharmaceutical Group, Inc.
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Zhen Jiang Wang
Chairman and CEO