Lotus Pharmaceuticals is involved in a diverse group of pharmaceutical applications in China.
Today we will examine the prospects for the ten drug stores owned throughout many different districts of Beijing and their over the counter (OTC) pharmaceutical business.
A quick look at the underlying demographics provide an insight into the basis of this reality. China’s economy is benefited by a burgeoning middle class of China which is fueling demand for modern pharmaceuticals.
The ten largest Chinese cities are home to about 50 million consumers. They make up only 3.6 percent of China’s population but they account for 20 percent of all retail sales. For this population there is a rapid development in shopping in a modern retailing environment versus traditional open-air markets. OTC pharmaceuticals fit the bill for this demographic.
If you look at the numbers in the OTC drug business for China they are all extremely good. No real surprise there. As China modernizes the OTC drug sales and pharmacies will expand with them and this expansion will begin in the urban areas.
The National Development and Reform Commission recently noted profits for the pharmaceutical industry grew 11.1 per cent to 41.3 billion yuan last year from 2005. Sales reached 526.78 billion yuan, up 19.41 per cent.
The Chinese OTC pharmaceuticals market grew by 5.8% in 2006 to reach a value of $11.9 billion.
In 2011, the OTC market is forecast to have a value of $15.8 billion, an increase of 33.1% since 2006.
Traditional medicines form the most lucrative sector of the Chinese market, with a 57.2% share of the market by value.
China accounts for 30.4% of the Asia-Pacific market by value.
Pharmacies and drugstores form the most lucrative distribution channel, with a 60.3% share of the Chinese market by value.
Source: Lotus Pharmaceuticals and Data Monitor
Lotus Pharmaceuticals, Inc.
7900 Glades Road, Suite 420
Boca Raton, Florida 33434
Phone: (877) 801-0344
Fax: (954) 337-2204
Email: info@lotuseast.com
Disclosure: Pentony Enterprises LLC was compensated $10,000 directly from the company for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site are suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
Forward-Looking Statements Statements contained herein that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the company and its management. Such statements reflect management’s current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the Company’s ability to obtain additional financing and the demand for the Company’s products. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company’s expectations with regard to these forward-look ing statements or the occurrence of unanticipated events. Factors that may impact the Company’s success are more fully disclosed in the Company’s most recent public filings with the U.S. Securities and Exchange Commission (“SEC”).
StockGuru.com is owned and operated by Pentony Enterprises LLC, 9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (469) 252-3030. Web: StockGuru.com. Email: Publisher@stockguru.com.
