Tianyin Pharmaceuticals Co (NYSE AMEX:TPI)

Thursday, October 28, 2010

TPI Tianyin Pharmaceuticals (NYSE AMEX:TPI)

Has 56 products with a combination of patented medicine, modernized Chinese medicine, branded generics and other pharmaceuticals. Products are successful because of their efficacy in treating high-incidence healthcare indications in China and little side effects. TPI is the sole manufacturer of several revenue-driving products and most of which are eligible for government reimbursement.
Introduces 7 to10 new products each year
Usually takes new products about 3 years to reach maturity
Revenue expectation for new products is $500,000 - $1 million revenues for the first year and gradually increasing, possibly to several million dollars in the following 3 to 5 years.
70% of the revenue was contributed by prescription medicines in Tianyin's portfolio; more than 30% of the revenue was contributed by the patented biopharmaceutical.
China healthcare sector is growing about 15-19% annually
current tax rate 18%
No acquisitions in works
Will be working to call in warrants. Have around 9.0 million outstanding including 3.8 million at $1.60, another 4.3 million at $2.5 and the rest at $3.25 to $4.50.
CFO, CBDO and Director, James Jiayuan Tong, formerly with Rodman & Renshaw and has been tracking the progress of the company since its U.S. listing in early 2008.Joined company in April 2010. Recruiting him into the company was a more than two year process so he knew exactly what he was signing up for. He is a PhD and MD. Very impressive individual.