Helps Expand Market Coverage and Deepen Market Penetration in Heilongjiang, Anhui, Liaoning, Hebei and Henan Provinces
HONG KONG, Nov 23, 2015 - (ACN Newswire) - PuraPharm Corporation Limited ("PuraPharm" or the "Group", stock code: 1498) a leading Hong Kong-based Chinese medicine company engaged in the research and development, production, marketing and sale of Concentrated Chinese Medicine Granule ("CCMG") products marketed under its "Nong's" brand, is pleased to announce that PuraPharm (Nanning) Pharmaceuticals Co. Limited ("PuraPharm Nanning"), the Group's indirect wholly owned subsidiary, has entered into five distribution agreements with Heilongjiang ZBD Pharmaceutical Co Ltd ("Heilongjiang ZBD Pharma", Shanghai Stock Exchange stock code: 603567), pursuant to which PuraPharm Nanning appointed Heilongjiang ZBD Pharma as its exclusive distributor for its CCMG products in five provinces in China, namely Heilongjiang, Anhui, Liaoning, Hebei and Henan (save for the distributors who were appointed by the Group prior to inking the distribution agreements). The agreements will expire on 31 December 2018.
Mr. Chan Yu Ling, Abraham, Founder, Chairman, Chief Executive Officer and Executive Director of PuraPharm, said, "We are very pleased with this strategic collaboration with Heilongjiang ZBD Pharma. We believe that with its strong customer base and good relationship with hospitals and medical institutions in China, Heilongjiang ZBD Pharma is able to help expand PuraPharm's distribution network by broadening market coverage and deepen our market penetration in Heilongjiang, Anhui, Liaoning, Hebei and Henan provinces. Also, we will be able to save costs for establishing an extensive logistics network, while increase the effectiveness of selling our products in target markets within a short period of time."
PuraPharm Nanning will sell its CCMG products to Heilongjiang ZBD Pharma who will then re-sell such products to approved hospitals and medical institutions in the relevant provinces in China. In addition, Heilongjiang ZBD Pharma is required to meet certain sales targets in terms of the number of new hospitals or medical institutions it should sell to as well as the total amount of CCMG products to be purchased from PuraPharm Nanning.
Heilongjiang ZBD Pharma will establish new Chinese medicine dispensaries using the Group's Chinese Medicine Clinic Management System ("CMCMS") in accordance with the specifications provided by PuraPharm Nanning in the approved hospitals and medical institutions. Heilongjiang ZBD Pharma has also agreed to set up technical support and maintenance teams to ensure the CMCMS installed in the approved hospitals and medical institutions can be serviced in a timely manner if needed.
About PuraPharm Corporation Limited
PuraPharm is a leading Hong Kong-based Chinese medicine company engaged in the research and development, production, marketing and sale of CCMG products which the Group markets under its "Nong's" brand. According to the Euromonitor Report, PuraPharm is the largest supplier of CCMG products in Hong Kong with a market share of 70% in terms of prescription revenue for the Hong Kong CCMG product market in 2014. The Group also sells a broad range of general Chinese healthcare products, such as PuraGold and Oncozac, which are essentially Chinese herbal supplements, on an OTC basis, targeted at high-end consumers. PuraPharm's shares have been listed on the Main Board of the Stock Exchange of Hong Kong Limited since 8 July 2015.
About Heilongjiang ZBD Pharmaceutical Co Ltd (Stock code: 603567)
Heilongjiang ZBD Pharma is a listed company on the Shanghai Stock Exchange principally engaged in production and distribution of pharmaceutical products in China. Established in 1996, Heilongjiang ZBD Pharma has strong customer base and relationship with hospitals and medical institutions in China.
Source: PuraPharm Corporation Limited
Contact:
Strategic Financial Relations Limited Heidi So +852 2864 4826 heidi.so@sprg.com.hk Joanne Lam +852 2864 4816 joanne.lam@sprg.com.hk Fanny Yuen +852 2864 4853 fanny.yuen@sprg.com.hk www.sprg.com.hk
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