ChinaMedia Group StockGuru Profile CHMD.OB
CHMD:
CHMD has entered into a contract with a trading and distribution company to advertise its herbal medicine product on their hospital sign boards. Herbal medicine represents roughly fifty percent of medical treatment in China.
CHMD is building their hospital and outdoor advertising business with an approach to medicine in China that is in transition. It is quite normal in China to add ancient herbal treatments to a regimen of Western drugs.
Chinese herbal medicine is steeped in China’s culture and its precepts have been accepted by billions of people for thousands of years. And many of China’s herbal remedies are not folklore-based.
The modernizing nation with a booming middle class has embraced the use of Western medicine. Sales of Western-style pharmaceuticals in China grew 91% in five years to $13 billion in 2005, according to the Boston Consulting Group. (By comparison, the U.S. market is $262 billion.) There are 13,000 Western-style hospitals in China now, outnumbering traditional Chinese hospitals 5-to-1. Officially, 1,273 Western drug formulations are sold in China, far more than the 564 traditional Chinese medicine formulas, according to the 2005 Chinese Pharmacopoeia.
The size of the ancient and modern drug markets are roughly the same, though, because most of the Western-style medicines sold in China are cheaper generics. Few Beijing residents can afford to spend $200 a month on a bottle of Risperdal.
Growth is robust for both old and new styles of medicine, each rising at an annual clip of 12% or more.
CHMD is able to look to both western pharmaceutical companies and traditional Chinese herbal medicine companies for advertising revenue. The stakes are huge and the population is tremendous and growing at a phenomenal clip in urban areas — where CHMD will be advertising.
Traditional Chinese medicine practitioners have stuck with the old ways, shunning modern medical tools such as MRIs and CAT scan machines. “Traditional Chinese medicine doesn’t employ science. If a practitioner feels a lump, most will refer the patient to a Western [medicine] physician for a scan,” says Isaac Cohen, the chief executive of Bionovo, a tiny Emeryville, California pharmaceutical company that is developing drugs from plant extracts.
Many believe that herbal Chinese medicine is an underexploited reservoir of many more such drug candidates. Nature has always been a plentiful source of effective pharmaceuticals. Aspirin, for example, was originally derived from willow bark, and the anticancer drug Taxol comes from the bark of the Pacific yew tree. Slightly more than one-quarter of new drugs approved in the last 25 years came either directly from plants or fungi or were modified versions of drugs extracted from natural sources (see table).
CHMD will be able to take their health messages forward and find support with both companies — traditional pharmaceutical companies and herbal remedy companies.
In the 1990s several big pharmaceutical firms, including Bayer AG of Germany, Eli Lilly and Pfizer, formed alliances with Chinese research institutes or companies that specialized in traditional Chinese medicines, aiming to apply modern drug-hunting techniques to screen Chinese herbal medicines for potential Western blockbusters. But the only firm that achieved any success was Novartis, which in 1998 developed Coartem, an antimalarial drug that combines artemisinin, an extract from the sweet wormwood plant, with a compound called lumefantrine. The wormwood plant had long been used by Chinese herbalists to treat fever, and researchers in China determined in the early 1970s that artemisinin worked to combat malaria.
China Media group has the authority to present the health and education messages to the public, the power to underwrite these messages through advertising – a topic of great interest to pharmaceutical companies – AND it is acquiring an interest in the medium that will present these issues to the public in one of the most heavily populated provinces in China: Hunan.
CHMD is selling ads on these informational billboards and pharmaceutical companies are interested in these prime locations.
Source: China Media Group
China Media Group Corporation
9901 I.H. 10 West, Suite 800
San Antonio, TX, 78230
Hong Kong Office
1803 Chinachem Tower
34-37 Connaught Road, Central
Hong Kong, China
Phone: +852 3171 1209 ext 222
General Information: info@chinamediagroup.net
Investor Relations: ir@chinamediagroup.net
Website: http://www.chinamediagroup.net
Forward Looking Statement: This release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contain words such as “expects,” “believes,” “anticipates” and “intends.” Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the company’s ability to finance its planned expansion efforts; the company’s ability to manage its planned growth; and changes in regulations affecting the company’s business and such other risks disclosed from time to time in the company’s reports filed with the Securities and Exchange Commission. The company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management’s expectations, except as required by law.
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