Growth Drivers 

    • China is the 8th largest drug market and forecast to become the  largest in the world (Chinese Journal of
      
      Pharmaceuticals 2006) 

    • Drug sales were US $11.7 billion in 2005 and should continue to grow over 13% a year to reach US $21.9 
  
      billion in 2010 (IMS   Health, Fredonia Group ) 

    • Economics, demographics and government policy are leading to greater demand.

      > Rapid urbanization, and people in urban areas are better paid

      > Aging population, and people over 60 years old spend more than younger people on healthcare

      > The Chinese government is broadening the availability of  healthcare insurance　　　

Business Strategy 

    • Source and develop more sophisticated drugs that meet certification and patent standards and have long 
  
       product life spans

    • Control the cost of raw materials through opportunistic purchases

    • Focus on high margin products for which there are no immediate substitutes 

    • Work to have more products included on Provincial and National Healthcare Insurance Lists so that consumers 

      will have the cost of drugs reimbursed to them. 

    • Sell through China's main channel, hospitals, and to drug distributors while developing direct sales through
 
      pharmacies . 

    • Develop brand recognition through marketing activities