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Tianyin Pharmaceutical Co., Inc. Expects to Benefit from the Recently Published Guide to Pricing Reform for Medicine and Medical Services
Date:2/9/2010

CHENGDU, China, Feb. 9 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") and Western Pharmaceuticals based in Chengdu, China, today announced that it expects operational benefits from the recently published Guide to Reform of Pricing Mechanism of Medicine and Medical Services by the Chinese government.

On November 9, 2009, the Chinese National Development and Reform Commission, the Ministry of Health, and the Ministry of Human Resource and Social Security released a comprehensive Guide proposed to protect and foster the development of Chinese Medicine, which is aimed at benefiting the pharmaceutical companies focusing on specialized Chinese medicines like Tianyin Pharmaceuticals. The Guide requires that the pricing of medicine and medical services should reflect the quality differential. As such, the government will support higher sales prices set by the overall market for pharmaceutical companies which develop specialized products with strong efficacy for specific indications. The Guide also defined maximum profit margins for national and local distributors, which will further reduce the overall distribution costs of medicine and improve margins for the producers.

"We have spent considerable resources analyzing all aspects and implications of the new pricing mechanism Guide and are confident that Tianyin's portfolio will enjoy enhanced pricing as the benefits of several of our leading proprietary TCM products are well recognized by the marketplace," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "In addition, the Guide requi
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