CHENGDU, China, June 29 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Co., Inc., (NYSE AMEX: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that it has engaged a major advertising firm to commence a marketing initiative for its Xuelian Chongcao Oral Liquid product that will include prominent, prime-time advertisements on China Central Television (CCTV), China's most famous television station, which is viewed by 98% of households throughout China.
The length of the advertisements varies from 5 to 15 seconds and will run 37 to 40 times everyday for 12 months. In addition to the program on CCTV, the advertising partner is launching an expanded TV advertising program in Shanxi, Tianjin and Yunnan province. In the next several months, Tianyin will launch the advertising program in various cities and provinces nationwide. Tianyin is utilizing an innovative commission based compensation structure with this firm that is aimed at building significant brand awareness and market share gains while minimizing the risk to Tianyin, by placing the burden of performance on its partner.
Tianyin received the official approval from the Chinese State Food and Drug Administration (SFDA) to produce Xuelian Chongcao Oral Liquid in two dosage forms, 90 ml and 150 ml back in October 2002. The retail prices of 90 ml and 150 ml are approximately $10 and $18, respectively; under typical use, these quantities provide 3 to 5 days of treatment, respectively. Xuelian Chongcao Oral Liquid is an Over-the-counter TCM drug that effectively replenishes Yang due to a Yang and Qi insufficiency of the kidney, and also improves overall energy. Tianyin will produce this product at its current facility and management expects this product to generate revenue of approximately $4.4 million in fiscal year 2010, with greater growth anticipated in the following year. This revenue is a component of recently issued guidance for fiscal 2010.
"Following in the path of our success with Ginko Mihuan, we expect Xuelian Chongcao Oral Liquid to become a blockbuster product in our portfolio during the next two years as we leverage this to our existing distribution network and employ this aggressive advertising program to build brand awareness and drive incremental sales," stated Dr. Guoqing Jiang, Tianyin's Chief Executive Officer. "We have initiated the GMP-certification process of our new production facility and we will immediately utilize the increased capacity for our production needs as these marketing initiatives commence."
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma.com .
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|SOURCE Tianyin Pharmaceutical Co., Inc.|
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