Tianyin and Kelun Medicine sign distribution partnership

Under the agreement, Kelun Medicine will guarantee to distribute $2.78 million (RMB20 million) worth of Tianyin products within Sichuan Province between April 1, 2008 and March 31, 2009. This excludes the company’s proprietary drug Ginkgo Mihuan Oral Liquid for treatment of coronary heart diseases and myocardial infarction.

Kelun Medicine will delegate the sales and marketing campaigns for Tianyin products to the Sichuan Blue Sky Medical League, a drug distribution syndicate initiated and organized by Kelun Medicine. Sichuan Blue Sky Medical League has 108 members, all of which are pharmaceutical distribution enterprises within Sichuan Province except for one sole Chongqing-based distributor.

Tianyin Pharmaceutical is also accelerating the expansion pace of its direct sales force within the province. The company plans to assign 15-20 business managers to specifically work with the 108 distributors. Furthermore, to ensure a smooth and successful implementation of this collaboration agreement with Kelun Medicine, Tianyin Pharmaceutical will install and designate its own end units for product promotions within the territories covered by each distributor. Currently, there are a total of 50-60 of these end units, which are effectively sales offices with 2-3 sales personnel.