Tongjitang Chinese Medicines Company Acquires Anhui Jingfang Pharmaceutical Company

Enhances Tongjitang’s Therapeutic Focus and Leadership in Osteoporosis Market

SHENZHEN, China--(BUSINESS WIRE)--Apr 2, 2009 - Tongjitang Chinese Medicines Company (NYSE: TCM) (“Tongjitang” or the “Company”), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine (“TCM”) in China, today announced that it has acquired 100 percent of privately-owned Anhui Jingfang Pharmaceutical Co. Ltd. (“Jingfang”) for RMB60.0 million in cash. Tongjitang has paid 90% of the consideration and will pay the remaining 10% near the end of April.

Jingfang manufactures and sells more than thirty Western and traditional Chinese medicines. According to Jingfang’s financial accounts audited by its PRC accountants, Jingfang was profitable and achieved revenue of RMB56.1 million in 2007 and revenue of RMB40.7 million in 2008. Its major revenue-generating products are Fengshi Gutong Capsules, designed to relieve pain caused by rheumatic arthritis, and Jingshu Granules, designed to relieve stiffness and pain caused by degenerative osteoarthritis. Both of these products are traditional Chinese medicine-based prescription drugs exclusively produced by Jingfang and included in the National Medical Insurance Catalogue. In 2007 and 2008, revenue from these two products accounted for approximately 30% and 40%, respectively, of total revenue. Jingfang was founded in 1969 and is located in Xuancheng city, Anhui Province, China.

Xiaochun Wang, Tongjitang’s Chief Executive Officer and Chairman of the Board of Directors, commented, “One of our ongoing goals is to deploy capital efficiently so that we generate compelling future returns, and we believe acquiring Jingfang furthers this goal for several reasons. Jingfang’s main products nicely complement our existing product portfolio and further strengthen our therapeutic focus in orthopedics and geriatrics. We intend to capture incremental revenue by marketing and selling these leading products through our salesforce, which already focuses on the prescription orthopedics market. Additionally, the Company’s two core products are both included in the National Insurance Catalogue, which drives consistent future revenue aimed at a large, growing and relatively untapped marketplace.”

Tongjitang believes that the transaction is an attractive strategic decision for several reasons, including:

Enhances Orthopedic-Specialty Brand. Tongjitang believes that Jingfang’s Fengshi Gutong and Jingshu products, in addition to Tongjitang’s Xianling Gubao and LLF’s Heiguteng, will further Tongjitang’s brand leadership in orthopedic-focused traditional Chinese medicine in both the prescription and OTC markets. Tongjitang believes that under its established, widely-trusted name, it could co-brand the new acquired products and reinforce its trusted image as an orthopedic specialist in the modernized TCM arena.

Complements and Enriches Existing Product Portfolio. Jingfang’s major products, Fengshi Gutong Capsules and Jingshu Granules, both relieve pain caused by orthopedic conditions and complement Tongjitang’s existing product portfolio. Through its existing sales network and well-established distribution channels, Tongjitang intends to drive incremental sales. Augments Geographic Presence. The Jingfang acquisition will augment the Company’s existing presence and drive additional brand recognition in the Yangtze River Delta region, where Tongjitang already has a sizeable presence. Jingfang’s location, approximately 319 kilometers from Shanghai, 243 kilometers from Hangzhou and 194 kilometers from Nanjing, is convenient to major cities in Southeastern China. Such location provides easy access to large distribution channels and the associated markets in Southeastern China.

Inclusion in National Medical Insurance CataIogue. Both of Jingfang’s primary products are included in the National Medical Insurance Catalogue, which helps create consistent product demand in China’s healthcare marketplace. About Tongjitang Chinese Medicines Company

Tongjitang Chinese Medicines Company, through its operating subsidiaries Tongjitang Pharmaceutical, Tongjitang Distribution, Tongjitang Chain Stores, Guizhou Long-Life Pharmaceutical Company Limited and Qinghai Pulante, is a vertically integrated and profitable specialty pharmaceutical company focused on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China. Tongjitang’s principal executive offices are located in Shenzhen, China.

Tongjitang’s flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales in Renminbi. In addition to Xianling Gubao, the Company manufactures and markets 20 other modernized traditional Chinese medicine products and 22 western medicines. Please visit www.tongjitang.com for more information.

Safe Harbor Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from those described in the forward -looking statements in this press release. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: if disruptions in the financial markets and other macro-economic challenges currently affecting the economy of the United States and other parts of the world continue or even worsen, it may adversely impact the economy and consumer confidence in China; a further slowdown in the growth of China’s economy; our growth strategy; our future business development, results of operations and financial condition; our heavy dependence on the success of Xianling Gubao; our ability to market Xianling Gubao to hospitals and to retail pharmacies; the retail prices of our principal products’ being subject to price control by the government authorities in China; our products’ inclusion in national and provincial medical catalogs of the National Medical Insurance Program in China; our ability to obtain approval from the State Food and Drug Administration in China to convert a provisional national production standard of our principal products to a national final production standard; our ability to continue having the exclusive production rights for our products; our ability to further improve our barrenwort extraction efficiency; our ability to obtain manufacturing or marketing approval for our future products; our dependence on a limited number of distributors for a significant portion of our net revenues; our ability to protect our intellectual property rights and defend infringement or misappropriation claims by third parties; intense competition in the pharmaceutical market in China; the supply of quality medicinal raw materials; and uncertainties with respect to the legal system in China, including uncertainty with respect to potential regulatory changes in China’s healthcare industry. Further information regarding these and other risks is and will be included in our registration statement on Form F-1, our annual report on Form 20-F and other documents filed and to be filed with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Contact: ICR, Inc. Ashley M. Ammon or Christine Duan 203-682-8200 (Investor Relations)

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