First China Pharmaceutical Group, Inc. is a pharmaceutical distribution company that lists on the OTC Bulletin Board. They provide pharmaceutical products to drug stores, medical clinics, and hospitals in the People’s Republic of China. Founded in 2002, First China Pharmaceutical Group, Inc. has their headquarters in Kunming City, the Peoples Republic of China.
First China Pharmaceutical Group owns 100 percent of First China Pharmaceutical Group, Ltd. (FCPG-HK), a Hong Kong company that in turns owns 100 percent of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT). Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT) was a profitable provincial pharmaceutical distributor offering approximately 5,000 health products, including 1,000 over-the-counter drugs, 1,000 prescription drugs, 2,000 prepared Chinese medicines and 1,000 supplements.
First China Pharmaceutical Group has a significant strategic advantage over most of their competitors. They have acquired a “License of Internet Pharmacy Information Service” in Yunnan Province, enabling the organization to bypass municipal and county pharmaceutical distributors and provide products directly to their pharmacy, hospital, and clinic customers.
The Company currently provides approximately 5,000 drugs to more than 4,700 customers in China’s Yunnan Province. They are one of a few companies to secure an online pharmaceutical distribution license in Yunnan Province. They generated $17,809,836 in revenue and 2,008,093 in gross profits in 2009.
The Company’s short-term objective is to grow their product line from 5,000 products to 30,000. They are also looking to include significantly more Western medicines as well as traditional Chinese drugs and herbs. They expect to be able to become their customers’ primary distributor, supplying more than 80 percent of the pharmaceutical products they require. They also plan an aggressive sales campaign to attract 5,000 new primary customers.
Last week, First China Pharmaceutical Group, Inc. announced the signing of an exclusive drug distribution agreement. They signed the agreement January 15, 2011 with Medisan Pharmaceutical Co. Ltd. of Harbin City to act as the exclusive distributor for the specialty drug Esmolol Hydrochloride, a short and rapid-acting beta class II anti-arrhythmic used for temporary control of heart rate and blood pressure.
The product will be available to hospitals and clinics throughout China. Company management estimates initial sales between US$650,000 to $1 million. There is the potential for significant growth as the Company extends their market base throughout the nation.