Leveraging the capital market, Qizheng Tibetan Medicine aims to become a leader in its field.

　　Staying true to its principles while innovating, Tibet Qizheng Tibetan Medicine Co., Ltd. has gained a prominent reputation in the pain-relief drug market. In 2008, the company's IPO application was approved by the China Securities Regulatory Commission and is now awaiting issuance, as it seeks further growth through the capital market.

　　A responsible official from Qizheng Tibetan Medicine told reporters that since its establishment, the company has been focused on the pain-relief drug market and dedicated to the Tibetan medicine industry. Currently, the company’s core business involves the research, development, production, and sale of Tibetan medicines, including topical pain-relief medications and oral drugs.

　　According to available data, since setting foot on the Qinghai-Tibet Plateau in 1995 and dedicating itself to the first batch of Guangcai poverty alleviation and development projects in the snowy region, Qizheng Tibetan Medicine has built four modern Tibetan medicine factories—one each in Tibet and Gansu. Currently, the company operates GMP production lines for seven dosage forms, holds 68 drug approval numbers, and boasts five nationally protected traditional Chinese medicine varieties (including one exclusively protected variety). Nine of its products have been included in the National Medical Insurance Catalogue. The company’s flagship product, Qizheng Pain-Relieving Plaster, has been designated as both a “Nationally Protected Traditional Chinese Medicine Variety” and a “Nationally Confidential Variety.” As of the end of 2008, Qizheng Tibetan Medicine had cumulatively paid nearly 370 million yuan in taxes in Tibet.

　　In July 2003, Qizheng Tibetan Medicine was recognized by the Ministry of Science and Technology as a “Key High-Tech Enterprise under the National Torch Program.” In 2006, the Ministry of Science and Technology and two other ministries jointly selected 103 exemplary enterprises from various industries to serve as model representatives for technological innovation in their respective sectors; our company was the only Tibetan medicine enterprise chosen. In July 2008, the company was officially awarded one of the first batch of National Innovative Enterprises, becoming the sole national innovative enterprise in China’s Tibetan medicine industry.

　　According to statistical data, the total industrial output value of Tibetan medicine enterprises nationwide currently stands at approximately 1 billion yuan, accounting for only about 0.2% of China's total pharmaceutical industry output value. However, these enterprises are experiencing annual growth rates of around 50%. Among the 17 Tibetan medicine production enterprises in the Tibet Autonomous Region that have obtained GMP certification, Qizheng Tibetan Medicine is the largest, ranking first in the region in terms of industrial output value.

　　Analysts point out that, according to market data from major Chinese traditional medicine hospitals in China since 2006, Qizheng Tibetan Medicine is the only manufacturer of topical pain-relief drugs to have made it into the top ten—and also the only manufacturer of Tibetan medicines. In the domestic pharmaceutical retail market, topical pain-relief drugs have maintained an annual growth rate of between 17% and 20%. Qizheng Tibetan Medicine’s flagship product, Xiaotong Paste, has been used by 200 million people across mainland China, with 60% of users being repeat customers and boasting a reputation rating of over 80%. For six consecutive years, Qizheng Xiaotong Paste has ranked first in market share, accounting for more than 20% of the entire topical pain-relief patch market.

　　With such impressive achievements, in order to achieve even greater development, Qizheng Tibetan Medicine has decided to leverage the power of the capital market. In 2007, to further strengthen its overall competitiveness and drive the Tibetan medicine industry toward greater size and strength, Qizheng Tibetan Medicine began exploring the path to the capital markets. In August 2008, the company’s application for an initial public offering of A-shares was approved by the China Securities Regulatory Commission, and Qizheng Tibetan Medicine is poised to become a new listed company in Tibet.

　　Source of information: Shanghai Securities Journal

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