China’s economy is booming and the pharmaceutical industry is keeping pace within the country. The country’s pharmaceutical market is expected to be the world’s fifth largest by 2010 and the largest by 2050. China has already captured a significant market share of the world’s pharmaceutical market and will likely continue to grow. The Chinese drug market is currently valued at $18.5 billion reporting a 14% increase in annual growth. By 2010 it is expected that drug sales will rise to $28 billion. China Medicine Corp. is already capitalizing on these developments, as the company registered improved results for the first half of 2007 when compared to 2006. The numbers speak for themselves: the revenue for the first six months of 2007 reached $13.4 million meaning a 70.2 % increase over the same period in 2006. The result of company operations registered even higher growth. In comparison with 2006 the operating income grew by 192.5% for the first half of 2007 to reach $2.4 million. Net income increased from $0.6 million for the first six months of 2006 to $1.9 million for the same period of 2007, representing a 240% growth rate. The improvement of the Company’s results is even more substantial if one considers that the second half of the year is generally the strongest compared to the first one. The pharmaceutical industry usually experiences an increased demand in the second part of the year, a trend that will allow CHME to capitalize on and potentially raise its revenue forecasts. Moreover, CHME recently received a grant from the Guangdong Province for its ADTZ project in order to support the product commercialization. The growing Chinese economy and the increasing life span of Chinese citizens, should work to positively impact the medical and pharmaceutical industry as a whole.
About China Medicine Corporation (OTCBB: CHME)
China Medicine is a distributor of medical products, traditional pharmaceutical medicines, traditional Chinese medicines, Chinese herbs and dietary supplements to over 28 provinces and 2,500 customers within China. The Company sells more than 1,500 products and is actively building a pipeline of proprietary traditional and Chinese herbal remedy products targeting oncology, high blood pressure and the removal of Aflatoxins from food and animal feed.