Beijing Med-Pharm Corporation (BJGP)
Beijing Med-Pharm Corporation operates as a pharmaceutical marketing and distribution company in China. The Company's services, which it offers through Beijing Med-Pharm Market Calculating Co., Ltd. (BMP China) and Beijing Wanwei Pharmaceutical Co., Ltd. (Wanwei) to foreign and domestic pharmaceutical manufacturers in China, focuses primarily on marketing and promotional services and distribution. These services include pre-market entry analysis; clinical trial management; product registration; market research; pharmaceutical marketing to physicians, hospitals and other healthcare providers; and pharmaceutical distribution.
The Company, through Wanwei, has distribution relationships with approximately 50 distributors located throughout China and access to hospitals in Beijing. Wanwei distributes approximately 900 products to approximately 300 customers.
Services
Product Marketing
The Company provides marketing services to manufacturers and distributors who wish to stimulate market demand with respect to their products. These services primarily fall into two areas:
Physician-Oriented Marketing: Physician-oriented marketing consists primarily of in-person visits by drug company representatives, advertising in journals and conducting continuing medical education events. Pharmaceutical industry-sponsored programs play an important role in informing and updating physicians on drug developments. These include medical symposia, hospital grand rounds, visits to clinical faculty, round-table discussions, journal articles and special supplements, single-issue publications, scientific exhibits, slide and audio tape presentations, press kits, conferences, video news releases and other methods of disseminating information about products. The Company also specializes in the compilation of literature and the organization of national seminars and conferences to market specific drugs to doctors and hospital executives in China.
In addition, the Company employs medical representatives who promote clients' drugs by providing in-person visits to hospitals and local doctors, a useful service to foreign pharmaceutical manufacturers who may not have, or may not wish to have, the necessary infrastructure to ensure that local prescribers have the required understanding of new pharmaceutical products. The Company also provides clients with introductions to major healthcare providers in China.
Government Promotion: The Company through its contacts with local pharmaceutical manufacturers can provide value to foreign manufacturers looking to benefit from a formal association with a domestic partner. In addition, it also lobbies provincial government agencies on behalf of foreign clients to keep particular drugs in the Insurance Catalogue.
Clinical and Regulatory Services
The Company offers the following two categories of clinical services:
Pre-Market Entry Analysis: The Company provides foreign and domestic pharmaceutical companies with an analysis service relating to the introduction of pharmaceutical products into the Chinese market. These studies offer a market assessment for a potential entrant, with a 'go' or 'don't go' recommendation to the client.
Product Registration: The Company provides clients with services relating to the registration of drugs for use within China. These services include evaluation prior to application to SFDA; full document preparation; quality control analysis; and obtaining an import drug license.
The Company has provided clinical and regulatory services to pharmaceutical manufacturers from the United States, United Kingdom, India, Germany and Switzerland. The Company has registered drugs and compounds for various foreign manufacturers, including Biomet Merck, Haw Par Healthcare, Ltd., and Galerma S.A.
Customers and Partners
The Company's customers generally fall into the following three categories: Large Foreign Pharmaceutical Manufacturers; Smaller Foreign Pharmaceutical Manufacturers; and Domestic Pharmaceutical Companies.
In 2005, the Company's major customers included Biomet Merck; and Zhonghuo High Tech Corp; and MCM Klosterfrau GmbH.
Product Portfolio
The Company provides marketing and promotional services with respect to Septopal 30, Septocoll E, Fem 7, Shuganyiyang and Propess. The manufacturer of Septopal 30 and Septocoll E appointed the Company as its marketing and promotion agent with respect to these products, and appointed Xiamen International Economic & Trade Co., Ltd. (Xiamen), a Chinese pharmaceutical distribution company, as distribution agent. The manufacturers of Fem 7 and Cervadil appointed the Company as their agent for the marketing, promotion and distribution of Fem 7 and Propess. The owner of Shuganyiyang appointed the Company and Xiamen as co-agents for the marketing, promotion and distribution of Shuganyiyang. With respect to Fem 7 and Shuganyiyang, the Company has separate cooperation agreements with Xiamen under which the Company would be responsible for the marketing and promotion of Shuganyiyang in China and Xiamen would be responsible for the distribution of Shuganyiyang.
Septopal 30
Septopal 30 is a local antibiotic used for the prevention of infections in surgical procedures. The manufacturer of Septopal 30 is Biomet Merck. The Company has an agreement with Biomet Merck that entitles the Company to serve as the provider of these services with respect to Septopal 30. The term of this agreement expires on December 31, 2006. Biomet Merck has advised the Company that they would discontinue production until 2007. The Company intends to stop marketing the product once the available inventory is sold out.
Septocoll E
Septocoll E is a locally applied medical device used in orthopedics, trauma and cerebral surgery to stop bleeding and prevent infections of surgical wounds. The manufacturer of Septocoll E is Biomet Merck. Biomet Merck has advised the Company that they would discontinue production until 2007. The Company intends to stop marketing the product once the available inventory is sold out.
Propess
Propess is a vaginal insert used to ripen the cervix in preparation for childbirth when labor is induced. The manufacturer of Propess is Cytokine PharmaScienics, Inc. The Company entered into an agreement with Cytokine in August 2005, under which it has the right to market, promote and distribute Propess in China. The term of this agreement is five years.
Fem 7
Fem 7 is a hormone replacement therapy. The manufacturer of Fem 7 is Merck Pharmaceuticals, Ltd. (Merck Pharma). Under an agreement with Merck Pharma, the Company has the right to market, promote and distribute Fem 7. The term of its agreement with Merck Pharma expires on February 10, 2007.
Shuganyiyang
Shuganyiyang is a treatment for premature ejaculation and erectile dysfunction. The owner of Shuganyiyang is Beijing Zhongxi Andriatry Pharmaceutical Co., Ltd. (Zhongxi). Under an agent agreement with Zhongxi, the Company and Xiamen International Economic & Trade Co., Ltd. have the right to market, promote and distribute Shuganyiyang. The term of the agent agreement expires on September 29, 2008.
Wanwei Business
The major business activity of Wanwei is pharmaceutical product distribution, which includes the distribution of: western medicines; traditional Chinese medicines; bio-chemical medicines; and medical applications.
The business scope of Wanwei is the wholesale of western medicine preparations, prepared Chinese medicines, chemical feedstock medicines, bio-chemical medicines, medical appliances, material for packing, chemical products, health foods and biological products approved by the Ministry of Public Health; technical development and technical consultation of western medicine preparations, prepared Chinese medicines, chemical feedstock medicines, medical appliances and new materials for medicine packing. |
