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China Yongxin Pharmaceuticals Inc. to Distribute Medicines on the Essential Drug List
Date:11/30/2009

CHANGCHUN, China and LOS ANGELES, Nov. 30 /PRNewswire-Asia-FirstCall/ -- China Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN; 'China Yongxin Pharmaceuticals' or 'the Company'), a leading manufacturer, distributor and retailer of pharmaceuticals in Northeastern China, today announced it has completed preparation for distribution of medicines on the Essential Drug List.

The Chinese government recently formalized the nation's Essential Drug List which covers pharmaceuticals used to treat up to 80 percent of the most common diseases in China in August 18, 2009. According to the Chinese government's healthcare reform plan, 90 percent of China's citizens will be covered by a universal healthcare system by the year 2010. Under the plan, drugs on the National Essential Drugs List will be purchased and distributed to medical facilities including hospitals, clinics, pharmacies, etc. All drugs on the List will be covered by the basic insurance plan supported by the government. The government will invite public bidding for centralized distribution for essential drugs. Currently, Yongxin distributes 297 products out of 307 drugs listed on EDL. As one of the top medicine distributors in Jilin province with modern pharmaceutical logistic center, China Yongxin launched corresponding business preparation for public bidding and distribution for the first batch of 138 township hospitals and 11 city hospitals in Jilin province. The official public bidding is expected to be announced before the end of 2009. The winning of first batch will increase revenues of drug distribution and will help facilitate winning other batches of hospitals.

"We are pleased to initiate distribution of essential drugs and believe this presents a significant growth opportunity. The government's new efforts to centralize distribution of essential drugs will benefit China Yongxin in the long-term since we are one of the leading drug distrib
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SOURCE China Yongxin Pharmaceuticals, Inc.
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