Tianyin Pharmaceutical Co., Inc. Adopts New Sales Strategy for Azithromycin Dispersible Tablets
March 17 2009 - 7:00AM
PR Newswire (US)
Company Expects 367% Increase in Monthly Revenue Generated by the
Drug Increased Market Share to Drive Approximately $3.7 million in
Revenue Growth During Next 12 Months CHENGDU, China, March 17
/PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc.,
(NYSE Alternext: TPI), a manufacturer and supplier of modernized
traditional Chinese medicine ("TCM") based in Chengdu, China, today
announced it has adopted a new sales strategy for Azithromycin
Dispersible Tablets. On average it takes 6 months for the market of
a new drug to mature. Tianyin launched Azithromycin Dispersible
Tablets in October 2008 and to date, the Company has met its
initial sales targets. This drug is widely recognized and used by a
large population of patients in China with collective 2007 annual
sales of approximately $350 million. As such, the Company is
focusing its sales efforts on the "Cost Preference Strategy."
Management expects that by the second half of calendar 2009,
monthly revenues generated from the sale of Azithromycin
Dispersible Tablets will increase approximately 367% to
approximately $430,000 from the current level of $117,000 per
month. If successful, this strategy will yield over $3.7 million in
incremental revenues on an annual basis with further growth
expected in the future. With such a rapid expansion after the
launch of the Azithromycin market penetration, Tianyin seized the
opportunity to aggressively seek additional market share, while at
the same time driving more sales to current distributors through
its "Cost Preference Strategy." Tianyin currently applies the Cost
Preference Strategy to its drugs with high market coverage such as
Ginkgo Mihuan Oral Liquid and Arpu Shuangxin Granules. This
strategy specifically focuses on reducing overall costs for the end
customer while maintaining favorable margins through economies of
scale in the production process. Dr. Jiang Guoqing, Tianyin's
Chairman and Chief Executive Officer, said, "We make prudent
adjustments to our sales strategy based on the changes in the
market to maximize the revenue and profit potential of each drug in
our portfolio. Sales have always been a key element to our growth
strategy. We continue to gain market share over our competitors by
properly deploying the right sales and marketing strategy at the
right time to optimize the contribution from each product and we
have already witnessed the economic benefits of this through
increased profits and cash flow during the past year." 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. 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: Web:
http://www.hcinternational.net/ DATASOURCE: Tianyin Pharmaceutical
Co., Inc. CONTACT: For the Company: Allen Tang, Ph.D., MBA,
Assistant to the CEO, China, +86-158-2122-5642, or ; Investors: Mr.
Matthew Hayden, HC International, +1-561-245-5155, Web site:
http://www.tianyinpharma.com/ http://www.hcinternational.net/
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