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Bohai Pharmaceuticals Group, Inc.

Bohai Pharmaceuticals Group, Inc.

Sector: Pharmaceutical Preparations Region: China


: | OTC Markets: BOPH


Bohai Pharmaceuticals Group, Inc. (OTC: BOPH) is a leading manufacturer and marketer of herb-based pharmaceutical formulations based on traditional Chinese medicine (TCM). Of the company’s seven major TCMs being used throughout China, four prescription drugs are sold to more than 2,000 Level 1 & 2 hospitals and nearly 17,000 rural hospitals/clinics. Three OTC products are sold primarily to 2,900 retail pharmacies.

Bohai’s TCMs have been effective in treating a number of serious ailments and conditions including rheumatoid arthritis, respiratory tract infection, chronic tracheitis and bronchitis, coronary heart disease and skin diseases like eczema. The company’s top-selling products are eligible for up to 100 percent insurance reimbursement by the Chinese government. Two are included on the Essential Drugs List (EDL) for all of China, and two are onthe EDL for Shandong and Hubei Provinces . EDL inclusion is highly favorable to Bohai’s growth because all rural hospitals/clinics and Level 2 hospitals in China are mandated by law to limit prescriptions to EDL-listed products.

Over 30 percent of Bohai’s $150 million (USD) in annualized revenue can be attributed to the sale of its Tongbi Capsule, which has EDL status and is prescribed nationally for the treatment of rheumatism and rheumatoid arthritis. This TCM also has both Protected and Patented Status in China. Protected Status gives Bohai exclusive manufacturing rights to the Tongbi Capsule formula for an initial seven-year term with another seven-year term renewal. Patented Status covers Tongbi Capsule’s process as well as its formula for a 20-year period. In addition to Tongbi Capsule, Bohai has received Protected Status on its TCM for the treatment of coronary heart disease and angina pectoris. Two additional Bohai products, Lung Nourishing Syrup for chronic tracheitis and bronchitis, and a second Tongbi formula in tablet form, also benefit from Patented Status.

Co-founded in 2004 by Chairman and CEO Hongwei Qu, Bohai received its listing as a U.S. public company ( OTC: BOPH) in January 2010. It proceeded to acquire Yantai Tianzheng Pharmaceutical Company in August 2011 and now employs more than 660 people, occupies seven acres of manufacturing space in Yantai, Shandong Province, and operates 15 sales offices in China staffed by 136 of its employees. The company services its vast nationwide customer base through a network of over 90 distributors in 20 provinces.

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Executives

Hongwei Qu, Chariman, CEO and Sales Manager
Mr. Qu, 39,brings significant management experience in the medical and pharmaceutical sector in China, most recently as the founder of Yantai Hangwei Medical Trading Co. in 2001. Mr. Qu, who engineered the acquisition of Bohai in May 2007, resulting in the current company, has extensive and wide-ranging contacts in government and industry. Under his leadership, Bohai has grown to annualized sales of $150 million from $38 million in 2007.
Chunhong Jiang, Secretary and Treasurer
Ms. Jiang, 49, joined Bohai in 2007 and was appointed Secretary and Treasurer in June 2010 responsible for the company’s accounting and finance functions. Ms. Jiang has over 20 years of business experience, including a position as Financial Manager at Yantai Garment Company from 1994 to 2003, and as Financial Manager at Yantai Furao Trading Group from 2004 to 2007.
Zhizhong Jia, VP Operations
Mr. Jia, 43, joined Bohai in 2010 and has management experience in various industrial sectors. His past positions include Vice General Manager of Yantai City Gold Mine from 1992 to 2001 and Vice President of Yantai Jialong Nano Industry Company from 2001 to 2010.

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