Tianyin Pharma Pleases Investors with Win of Government Tenders

Tianyin Pharmaceutical, Co., Inc. of Chengdu (TYNP.OB) reported that it has won official government tenders for Ginkgo Mihuan Oral Solution in four China provinces: Liaoning, Guangxi, Yunnan, and Shanxi.

The tender process allows companies to compete on the basis of price to be the preferred provider for specific products. The bidding process is conducted by hospitals and medical institutions in an area.

Ginkgo Mihuan Oral Solution, Tianyin’s most successful product, provides 31% of the company’s revenues. Ginkgo Mihuan Oral Solution is a traditional Chinese medicine that is prescribed to treat sequelas of cerebral thrombosis, coronary heart diseases and myocardial infarction.

Previously, Tianyin was granted government tenders for three other products: Arpu Shuangxin, Granule Baoxinning Capsules, and Radix Sophorae Flavescentis Vaginal Effervescent Tablets.

Tianyin’s fortunes are on an upswing. As of December 31, 2007, at the end of the first six months of the company’s fiscal year, Tianyin had booked a 82% increase in revenues, which were listed as $14.9 million, and a 45% rise in net income, which hit $3.2 million. In terms of cash flow, Tianyin bought $133,591 worth of property and equipment, paid off $923,109 in bank loans and still increased its cash on hand by $735,027 to a final figure of $1.4 million.

Currently, Tianyin is marketing 34 modernized TCMs, 22 of which are listed in the National Medicine Catalog of the National Medical Insurance Program. In addition, another 51 pharmaceutical products await SFDA approval. With a PE ratio of just 9.4, Tianyin’s stock price does not reflect its recent performance or potential growth.

Investors gave a thumbs-up to the news that Ginkgo Mihuan was successful in gaining government tenders. Tianyin moved 15 cents higher (5%) to $3.35. The company has a market capitalization of $49 million. Tianyin Pharma became a public company earlier this year when it completed a reverse merger with VisCorp.

Disclosure: none.