China Medicine Corp · OTC:CHME
China Medicine — Investor Presentation (November 2010)
19 slides from China Medicine's investor presentation, Nov 29, 2010
Slide 1: November 2010 (CHME.OB)
November 2010 (CHME.OB)
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual resul
Slide 3: CMC Group Chart
LifeTech Technological (Guangzhou, China) Konzern Medicine (Guangzhou, China) Co-Win (Guangzhou, China) CMC (Nevada, US) Jinan University 15% Professor Yao 15% Konzern Bio (Guangzhou, China) U.S. Konzern (New Jersey, US) LifeTech (Guangzhou, China) Konzern Group (Guangzhou, China) CMC Group Chart 10
Slide 4: Business at a Glance
A vertically integrated pharmaceutical producer, distributor and developer in China. A leading manufacturer with a series premium proprietary products, and a list of patented pipeline products. A nationwide sales network covering over 26 provinces across the Mainland China (The excluded provinces in
Slide 5: Growth Strategy
Well positioned in China’s healthcare reform and closely aligned with the growing trend in the fragmented industry. Committed to build one mega brand with four series of premium products. Aimed to transform to an OTC market specialist while executing a “Branding + Network” growth strategy, through t
Slide 6: "One Brand, Four Series"
“One Brand, Four Series” One Brand: LifeTech Four Series of Premium Products: Series A: Anti-inflammatory Series C: Cardiovascular Series B: Gynecology Series D: Diabetes
Slide 7: Other Proprietary Products
Other Proprietary Products
Slide 8: Competitive Advantages
National Level Distributors Demand-based Product Allocation R&D, IP, OEM, proprietary products Provincial Level Distributors Competitive Advantages GMP Facility (LifeTech) Over 840 customers Vertically-integrated pharmaceutical company Well positioned to improve profit margin via sales of proprietar
Slide 9: Promising Pipeline Products
Promising Pipeline Products Aflatoxin Detoxifizyme (rADTZ) A proprietary recombinant used for removing aflatoxins in food and animal feed. Pending for MOA approval. Anticipated approval by the end of 2010. Patented in 6 countries, including the U.S. Zhimu Huangtong Patented TCM to treat diabetes. Ph
Slide 10: Diversified Distribution Product Portfolio
Diversified Distribution Product Portfolio Agent for CT (Computerized Tomography) Scan: Iopamidol Injection 300 & 370, a liquid preparation used for stomach radiography Cardiovascular & Cerebral-vascular Medical Treatment: Hongjin Xiaojie Capsules, TCM Cinepazide Maleate Injection Xueshuantong for I
Slide 11: Selected Balance Sheet Items
As of Dec 31, 2009 As of Sep 30, 2010 (Unaudited) Total Assets $66.8 $134.0 Total Liabilities & Equity $66.8 $134.0 (USD in millions) Assets Cash and Cash Equivalents $2.2 $56.3 Accounts Receivable, Net $22.3 $17.3 Inventories, Net $2.7 $5.9 Plant & Equipment $12.0 $ 1 5.9 Liabilities Short Term Loa
Slide 12: Key Financials
FY2009 (Audited) As of Q3 2010 (Unaudited) FY2010 Financial Guidance Revenue US$64.8M US$45.3M US$68 - US$70 M (or 17.1% YOY growth) (or 2.2% YOY growth) (or 5% - 8% YOY growth) Gross Margin 29.3% 33.5% 33% - 38% Operating Expenses 10.4% of revenue 16.9% of revenue 16%-18% of revenue Key Financials
Slide 13: Management Team
Management Team Senshan Yang, CEO Founded and privatized Guangzhou Konzern Medicine Co., Ltd. in 2000 and brought the company public in 2006. Over 28 years of pharmaceutical management expertise and experience in reconstruction of SOEs. Graduate of South China University of Technology. Henry Ho, CFO
Slide 14: Growth Strategy
Well positioned in China’s healthcare reform and closely aligned with the growing trend in the fragmented industry. Committed to build one mega brand with four series of premium products. Aimed to transform to an OTC market specialist while executing a “Branding + Network” growth strategy, through t
Slide 15: Thank You
Thank You (CHME.OB)
Slide 16: Appendix 1: Pharmaceutical Value Chain Overview
Manufacturer Distributor Retail Consumer Payer Services Chemical Biotech API TCM Devices CRO/CMO Distributor Wholesaler Hospital Clinic Diagnostic center Government Social welfare Private Drugstore Patient Ministry of Health (MOH) State Food and Drug Administration (SFDA) National Development and Re
Slide 17: Appendix 2: New Product Development
Appendix 2: New Product Development rADTZ A protein-enzyme which can detect and remove Aflatoxin carcinogens An “863” China National Scientific Engineering project China Medicine’s proprietary solution detects and reduces aflatoxins without side effects Received approvals in China, Australia, South
Slide 18: Appendix 3: Financial Performance (USD, in millions)
Appendix 3: Financial Performance (USD, in millions) Sales Operating Income Gross Profit Net Income 39% = CAGR 9M10 9M09 2009 2008 2007 2006 45.3 44.3 64.8 53.6 42.1 24.0 26% = CAGR 9M10 9M09 2009 2008 2007 2006 7.5 8.1 12.3 10.9 8.4 6.2 9.0 12.7 15.6 19.0 12.1 15.2 2006 2007 2008 2009 9M09 9M10 CAG
Slide 19: Appendix 4: Equity Snapshot
Ticker Price 52 –Week Range Shares outstanding Market Cap Appendix 4: Equity Snapshot CHME.OB $1.75 (November 24, 2010) $1.50 – $4.89 23.8 million $41.6 million
China Medicine — Investor Presentation (November 2010) on 6ix