Josh Stern

Fund Manager Peter Siris Spots Gold in China

In the case of CPHI, they have the following comment on late payments from their 10Q, also echoed on conference calls:

"As to the peculiarity of the Chinese pharmaceutical environment, defaults in payments to pharmaceutical companies by state owned hospitals are a normal phenomenon. Over 90% of our drugs are sold to state owned hospitals, the greater our business with the hospital, the more payments are defaulted, although in actual fact, all the defaulted payments are eventually paid, it is only a matter of time."