Kunming City, China-based, First China Pharmaceutical Group, Inc. (FCPG.OB) announced this morning that it has added two more distribution agreements to its rapidly growing distribution network in China. With the signing recent signing of the two district hospitals, the Kunming Maternal & Child Health Care Hospital and Kunming General Hospital of Chengdu Military Command, in Yunnan Province, the Company has added a total of ten new agreements to its portfolio within the last sixty days. Both hospitals will carry First China’s complete inventory of over 5,000 medicinal and pharmaceutical product lines.
First China is moving forward quickly with execution of its business strategies. Expansion of the distribution network is one element and the Company is making that happen. Additionally, First China has announced that its intent to acquire the interests of De Xin Pharmacy of Kunming City as a potential flagship retail outlet. On the last day of November, First China announced its intent to acquire what it deems to be an undervalued and well-positioned regional distribution company with great upside potential, Shandong Run Kang Pharmaceutical Co. Inc. of Jinan City in Shandong Province.
First China is hoping to leverage the China’s Ministry of Health’s directive to eliminate “cost plus” pricing systems by 2012 and the Ministry’s “advice” to consolidate procurement and distribution of pharmaceutical products. Hospitals and clinics are following the advice and it is benefiting leading companies, such as First China.
Additional plans for growth include continued expansion of its internet ordering system and its product capacity (from 5,000 to 30,000 products) to meet the needs of up to 70% of its customers who can then purchase directly form First China, rather than going through a pharmacy or other source.
More information on First China Pharmaceutical Group, its business strategies and the investment opportunity presented by FCPG can be found on the Company’s website at www.firstchinapharma.com.
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Andrew Klips (“the author”) has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified; the author makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author only and are subject to change without notice. The author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, the author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
The author does not own shares of First China Pharmaceutical Group, Inc.
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