Founded in 2005, we are an innovative pharmaceutical company based in China focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine tablets (the “TCMP”). “Suxuantang” is a name recognized by many especially in Eastern China. Suxuantang has over 270 years of history. To some, it is more than just a TCMP brand; it is a symbol of tradition and culture, which Chinese customers value deeply. It is also widely recognized by the industry as one of the three most famous TCMP brands; the other two are “Hui Chun Tang” and “Tong Ren Tang”. It is especially a recognized name in Jiangsu province where it was originated and in provinces nearby, such as Hubei, Shandong, and Anhui, where our products have been or are being used and their curative effects had been proven to the general public.
In an effort to capitalize on the rapid growth of the Chinese pharmaceutical industry, we established a diversified product portfolio consisting of 13 currently manufactured and marketed Advanced TCMP that address significant medical needs in China in the therapeutic areas of respiratory, cardiovascular, gastrointestinal and infectious diseases and cancer. These marketed products, together with our product candidates, target attractive commercial opportunities in the Chinese hospital market, which ranked as one of the largest healthcare markets in China in terms of sales revenue according to BiaoDian Medical Information Co., Ltd. We have a sales team composed of regional managers and sales representatives responsible for the distribution of our TCMP products in the Chinese hospital market through either pharmaceutical wholesalers to or directly to hospitals. Our products are used as prescription medicines in the Chinese hospitals. We currently sell three types of TCMP products: Advanced TCMP, Fine TCMP and Regular TCMP. Our Advanced TCMP includes thirteen products (the “Advanced TCMP”), which can be further divided into seven Directly Oral TCMP products (the “Directly-Oral-TCMP”) and six After-soaking-oral TCMP products (the “After-soaking-oral-TCMP”).
We have been focusing on the research and development of new Advanced TCMP products. We established a research center in December 2013. We submitted eight invention patent applications regarding Advanced TCMP to the State Intellectual Property Office of PRC in the Spring of 2017.
We employ a physician-targeted marketing model that is focused on detailing and promoting our products by providing physicians and hospitals with information on the benefits and differentiating clinical aspects of our products, which are also supported by a sale specialist network comprising key opinions leaders, physicians and pharmacists. We have already established a successful regional sales network covering 9 provinces in Eastern China. Our major customers are hospitals, especially TCM hospitals, primarily in the Jiangsu and Hubei provinces in China. Another substantial part of our sales are made to pharmaceutical distributors, which then sell our products to hospitals and other healthcare distributors such as Xinjiang Shenglu Pharmacetical Co. Ltd. and Shandong Luoxin Pharmaceutical Co. Ltd. As of November 2017, our end-customer base includes 20 pharmaceutical companies, 58 pharmacies and 65 hospitals in 9 provinces and municipalities in China including Jiangsu, Hubei, Shandong, Guangdong, Xinjiang, Anhui, Henan, Sichuan, and Chongqing.