CHENGDU, China, April 21 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc., , a manufacturer and supplier of modernized traditional Chinese medicine (“TCM”) based in Chengdu, China, today announced that it has completed the new round of tenders for its proprietary Ginkgo Mihuan Oral Solution for the year 2009 in China.
In China, medical organizations and institutions invite tenders from various pharmaceutical manufacturers annually, which is a critical component of the sales process. During the second half of 2008, medical organizations and institutions initiated the 2009 tendering process for pharmaceuticals throughout China. Tianyin’s flagship product, Ginkgo Mihuan Oral Solution, has successfully completed this process and received recognition from medical institutions such as hospitals and clinics, and market experts who were in charge of the tender process. The tender covers most provinces and cities in China and will improve the sales process, while improving the overall margin. During the second quarter of fiscal 2009, which ended December 31, 2008, Ginkgo Mihuan contributed approximately 25.7% to total revenues for the quarter with associated gross margins of approximately 74%.
In order to further increase the concentration of its commercial customer base and streamline the sales and distribution process, Tianyin’s sales department is focusing its efforts on consolidating the Company’s provincial distributors. Those who exhibit strong regional advantages, including a large footprint, higher capacity and larger order history will be chosen as “First Tier” provincial distributors. This group of distributors will purchase products directly from Tianyin and be responsible for selling to sub-distributors and dealers who previously purchased directly from the Company. Simultaneously, Tianyin is decreasing payment terms for remaining commercial customers who do not meet “First Tier” criteria; previously, payment terms for smaller customers was over 60 days despite order size or product mix, now it will be less than 60 days. Tianyin has also offered small discounts for pre-payment of orders to increase cash flow and reduce days sales outstanding (“DSO”). For the quarter ended December 31, 2008 Tianyin had DSO’s of 41.
“We are very pleased to complete the tenders for our flagship product Ginkgo Mihuan Oral Liquid as our focused sales and marketing efforts have successfully generated awareness in many of our key pharmaceutical markets in China and added revenues to our performance year to date. We expect these initiatives will enable us to further increase our market share for this key product, while contributing to revenue growth and improving profit margins during fiscal 2009. We also expect to secure 2009 tenders for other major products,” Dr. Jiang Guoqing, Tianyin’s Chairman and CEO commented. “In addition, our initiatives to streamline distribution, improve payment terms and the quality of our commercial customers is aimed at reducing risk while improving cash flow and customer satisfaction. We continue to grow our business by deploying the correct strategies at the right time. We have begun to witness improvements in both accounts receivable and working capital, which will further improve an already strong balance sheet. We are dedicated to growing our business intelligently and creating tangible returns for our shareholders.”
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. It has a comprehensive product portfolio of 33 modernized TCMs and 5 generic western medicines in the market, 22 of which 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 a pipeline of 47 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. 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.
CONTACT: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO,
China at +86-158-2122-5642 or Allen.y.tang@gmail.com; Investors: Mr.
Matthew Hayden, HC International at +1-561-245-5155 or
matt.hayden@hcinternational.net
Web site: http://www.tianyinpharma.com/
