Profile: BMP Sunstone Corporation (BJGP.O)

BMP Sunstone Corporation, formerly Beijing Med-Pharm Corporation, incorporated in November 2003, is a specialty pharmaceutical company with over-the-counter (OTC) manufacturing, marketing and distribution based in China. Through its subsidiary, Sunstone (Tangshan) Pharmaceutical Co., Ltd. (Sunstone) it manufactures, markets and distributes OTC products in China. In addition, through Beijing Medpharm Co. Ltd. (BMP China), Beijing Wanwei Pharmaceutical Co., Ltd., (Wanwei), and Shanghai Rongheng Pharmaceutical Company (Rongheng), it offers to foreign and domestic pharmaceutical manufacturers in China, services focused primarily on marketing and promotional services and distribution services. It operates in three segments: branded OTC segment, which includes the operations of Sunstone, Pharmaceutical Distribution segment, which includes the operations of Wanwei and Rongheng and Licensed Products segment, which includes the operations of BMP China. On February 18, 2008, it completed the acquisition of 51% interest in Sunstone China Limited. On July 4, 2008, it completed the acquisition of 63.3% interest in Rongheng.

Branded OTC Segment

The Company’s Branded OTC Segment consists of the operations of Sunstone, which is principally engaged in the research, development, manufacture and distribution of branded OTC products in China. Sunstone specializes in women and children’s medications and has manufacturing facilities located in Tangshan, Hebei Province China. Sunstone has three brand families: Hao Wawa (GoodBaby), which includes pediatric OTC products in different forms, including granules, chewables and syrups; Kang Fu Te (Confort), which is gynecology line of suppositories, and Nemei, which are OTC line of women’s health products.

Sunstone derives a portion of its revenue from the sales of its Hao Wawa line of pediatric products, including Pediatric Paracetamol and Amantadine Hydrochloride Granules, Xiao’er Huatan Zhike Granules, Xiao’er Kechuan Ling Oral Solution and Jianer Xiahoshi Oral Solution. Sales of these products accounted for 81% of Sunstone’s total revenue during the ended December 31, 2008. In addition, Sunstone manufactures the CONFORT line of products, which is a suppository based product for vaginal infections.

Pharmaceutical Distribution Segment

Its Pharmaceutical Distribution Segment consists of the operations of Wanwei and Rongheng. The principal business activity of Wanwei is pharmaceutical product distribution, which includes the distribution of western medicines, traditional Chinese medicines, bio-chemical medicines and medical applications. Wanwei has constructed a hospital distribution network consisting of approximately 600 hospitals in Beijing. In addition, Wanwei distributes products to 700 other hospitals outside Beijing through 48 pharmaceutical distributors. Wanwei is also the distributor of narcotic raw materials in Beijing.

The products distributed by Wanwei include Glurenorm, which is an oral antidiabetic medication used to treat patients with adult maturity onset or non-insulin dependent diabetes; Xingnaojing, which is an injectible medication used in the treatment of strokes; Ferrous Succinate Tablets, which are used to prevent and treat anemia due to lack of iron; Anpo, or ritodrine hydrochloride, which is a muscle relaxant available in both injectable and oral forms, and is used for managing pre-term labor, and Propess which is an vaginal insert used to ripen the cervix in preparation for childbirth when labor is induced.

Ronegheng’s business activity is primarily in Shanghai. Rongheng has a distribution network that includes 300 hospitals and 1780 pharmacies. Rongheng distributes approximately 450 products. The products distributed by Rongheng include Selenious Yeast Tablets, Cefotiam Hydrocloride, Gemcitabine Hydrochloride, Iohexol and Almitrine and Raubasine Compound.

Licensed Products Segment

The Company’s Licensed Products Segment consists of the operations of BMP China. BMP China provides a package of market-entry service for western pharmaceutical manufacturers. The Company provides marketing services to manufacturers and distributors. These services are primarily focused on physician-oriented marketing and clinical and regulatory services. Academic and physician-oriented marketing consists primarily of in-person visits by drug company representatives, advertising in journals and conducting continuing medical education events. These include medical symposia, hospital visits, visits to clinical faculty, round-table discussions, journal articles and special supplements, single-issue publications, scientific exhibits, slide and audio tape presentations, press kits, conferences, video news releases and other methods of disseminating information about products.

Through its clinical and regulatory services, the Company offers pre-market entry analysis and product registration. The Company provides clients with services relating to the registration of drugs for use within China. These services include: evaluation prior to application to China’s State Food and Drug Administration (SFDA); full document preparation; clinical trials management; pre-marketing campaign; drug inspection; negotiation with SFDA; quality control analysis, and obtaining an import drug license.

The Company competes with Shanghai Johnson & Johnson Pharmaceutical and Xian Janssen Pharmaceutical Ltd.