Tianyin Pharmaceutical, Co. (TPI) reported that it is very pleased with the results of the 2009 tender process recently completed for its flagship drug, Ginkgo Mihuan Oral Solution. Ginkgo Mihuan Oral Solution is a TCM used to treat sequels of cerebral thrombosis, coronary heart diseases and myocardial infarction. It generated 26% of Tianyin’s revenues in the December quarter.
Each year in China, medical organizations and institutions invite tenders from pharmas, essentially a reverse auction that sets a price for products. If a company’s product is selected in the tender process, it becomes the preferred product in a particular treatment area. Ginkgo Mihuan Oral Solution completed the process, receiving recognition from hospitals, clinics and market experts in charge of the tender process. Successful tenders will improve sales and the overall margin for the product, according to Tianyin.
To streamline its sales and distribution process, Tianyin is consolidating its provincial distributors, choosing First Tier distributors who have a large footprint, higher capacity and larger order history. They will purchase products directly from Tianyin and sell to sub-distributors and dealers, who previously purchased directly from the Company.
At the same time, Tianyin is demanding that non-First Tier clients pay in less than 60 days. Tianyin will also begin to offer small discounts for pre-payment of orders to increase cash flow and reduce days sales outstanding.
Established in 1994, Tianyin manufactures and supplies modernized pharmaceutical products, offering 33 modernized TCMs and 5 generic western medicines. Another 47 products await SFDA approval.