GUANGZHOU, China, Oct. 20 /PRNewswire-Asia/ -- China Medicine Corporation (OTC Bulletin Board: CHME) ("China Medicine" or "the Company"), a leading distributor and developer of prescription and over-the-counter pharmaceuticals, traditional Chinese medicines ("TCM"), nutritional and dietary-supplements, medical devices, and medical formulations in the People's Republic of China ("PRC"), announced today that one of its major products distributed by its fully owned subsidiary, Guangzhou Konzern Pharmaceutical Co., Ltd. ("Guangzhou Konzern"), Levocarnitine Dried Powder Injection ("Levocarnitine"), was registered with the Ministry of Health of Pakistan on September 25, 2009. The registration number of Levocarnitine in Pakistan is 059054.
Guangzhou Konzern entered into a two-year Distribution and Supply Agreement of Levocarnitine ("Agreement") with RG Pharmaceutica (Pvt.) Ltd. ("RGP"), a Pakistani pharmaceutical distributor. The agreement stipulates that RGP will be responsible for the product registration, importation and marketing within the territory of Pakistan. Levocarnitine is used to treat coronary heart disease and acute myocardial infarction. Currently, there are no pharmaceutical products similar to Levocarnitine in Pakistan, and the potential market for Levocarnitine in Pakistan is estimated at 2 million vials per year.
China Medicine expects to launch Levocarnitine in Pakistan in January 2010. The Company expects to ship approximately 100,000 vials of Levocarnitine within the first year of entering the market in Pakistan and estimates that gross margin for the product will not be less than 65%. Levocarnitine is manufactured by Guangzhou Lifetech Pharmaceutical Co., Ltd. in China ("Lifetech"). Lifetech is Guangzhou Konzern's exclusive Original Equipment Manufacturer ("OEM"). Guangzhou Konzern distributed Levocarnitine in China in the years of 2008 and 2007, which generated revenues of $1,470,333 and $1,253,185 and gross profits of $570,074 and $473,006.
"We are excited to be able to export our OEM manufactured Levocarnitine powder injection to Pakistan, marking a major milestone for our company in entering this overseas pharmaceutical market," commented Mr. Senshan Yang, Chairman and CEO of China Medicine. "In addition, we believe our strategic move to tap into the international pharmaceutical market overall will increase our profitability and maximize shareholder value."
About China Medicine Corporation
China Medicine Corporation is a leading pharmaceutical company that researches and develops medical formulations and distributes over 2,200 pharmaceutical products in China including prescription and over the counter ("OTC") drugs, traditional Chinese medicine products, herbs and
dietary-supplements. The Company distributes its products to more than 300 hospitals, 500 medicine companies, and 1,788 drug stores through wholesale distributors in 28 provinces throughout China. The Company actively develops a number of proprietary products for a variety of uses, including oncology, high blood pressure and the removal of toxins from food and animal feeds. For more information visit the Company's website at http://www.chinamedicinecorp.com .
Cautionary Statement
This press release contains forward-looking statements concerning the Company's business and products. The Company's actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, obtaining regulatory approval for new products, the expected contribution of higher margin products, government support for rural health care, competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Medicine Corporation undertakes no duty to revise or update any
forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Company Contact:
Mr. Richard Wu
Chief Financial Officer
China Medicine Corporation
Tel: +86-20-8737-2231
Email: richardpdwu@gmail.com
Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915 (NY Office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
