First Chinese medicine firm listed on NYSE
As reported by Medical Economic Daily, Tongjitang Chinese Medicines Co. (NYSE: TCM) was successfully listed in the New York Stock Exchange in March 2007, raising USD110 million. Its stock code “TCM” is the acronym for both Tongjitang Chinese Medicines and traditional Chinese medicines, echoing “Tongjitang”’s mission to promote the Chinese medicine culture.
An Old Chinese Trademark
Guizhou Tongjitang Pharmaceutical Company Limited was founded in 1888, and was conferred the title of “Old Chinese Trademark” by the Ministry of Commerce (MOC) of China in 1994. In 2002, Xianling Pharmaceutical merged with the company. Tongjitang is a unique and prolific pharmaceutical company specializing in producing modern proprietary Chinese medicines. Since 2004, the Compound Annual Growth Rate (CAGR) of its sales revenue has exceeded 40%, with a 10-fold growth in net profits over the past three years. Its 11 production lines which have passed the GMP certification can produce 12 drug forms including capsules, tablets, granules, lozenges, syrups, tinctures, oral solutions, ointments, etc. Currently, “Tongjitang” produces nearly 50 types of Chinese and Western medicines and eight of the products enjoy the invention patent intellectual right. Its main products include: Xianling Gubao Jiao Nang (Tablet), Zao Ren An Shen Jiao Nang, He Dian Bai Zhu Tang Jiang (Syrup), etc. Besides, “Tongjitang” has controlling interests in Tongjitang Distribution, Tongjitang Chain Stores, and Tongjitang Planting.
Tongjitang’s Xianling Gubao takes the lead among the proprietary Chinese medicines for the treatment of Bone Soft
In China, people are very familiar with Tongjitang’s Xianling Gubao. It takes the lead among the proprietary Chinese medicines for the treatment of Osteoporosis, occupying 70% of the market share in the country. In the previous year, the sales revenue for this product reached RMB360 million. “Xianling Gubao” can be traced back to the old history of Miao Tribe medicine. This is a folk prescription mainly comprising Herba Empimedii and Xuduan with miraculous efficacy. After the clinical verification by a great number of medical institutions, this medicine is currently the first medicine developed in China for Osteoporosis with both preventive and curative effects. Since Xianling Gubao Jiao Nang made its appearance in 1996, numerous high quality researches on the pharmacological and curative effects as well as clinical research on the medicine have been conducted. The company is in the process of conducting the advanced stage of clinical testing, assessing its curative effects in preventing avascular necrosis of bone. The clinical trial will further explore the medicinal effects of Xianling Gubao. Tongjitang will also adopt internationally accepted standards and scientific radiography in assessing the medicinal effects of Xianling Gubao Jiao Nang in accordance with the requirements as set by the U.S. Food and Drug Administration (FDA). During the test, objective analysis on the medicine under testing will be made. Conducting such systematic research on a Chinese medicine in China is very rare, and is considered a milestone in boosting Chinese medicine modernization and bringing it to the world.
Tongjitang was listed successfully in the New York Stock Exchange, acting as the prelude in boosting the Chinese medicine industry towards internationalization with the help of the international capital market platform.
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