|
|
|
Weikang's vertical integration and diversification lends itself to many strategic company and operational advantages.
Company Advantages
- Chairman Wang, with prior experience of both clinical and medicine distribution, gives company the insight of the industrial trends and product development
- Complete vertical integration including R&D, drug manufacturing, and distribution. The complete supply chain gives Weikang control over every step of the process allowing for economies of scale, diversification and margin protection.
- China is the 8th pharmaceutical market in the world and it forecast to become the 5th largest pharmaceutical market in 2010 and the largest by 2050. (IMS Health, Fredonia Group).
Operational and Product Advantages
- Company's unique technology synthesizes many common raw material which helps maintain margin costs and avoid the inflaction of the specific raw material
- Weikang has established partnerships with universities, such as Northeast Forestry University, and Tianjing University] Through this co-development platform, we can gain advanced access to international information and R&D trends
- General and administrative expenses are relatively low due to low labors costs in second and third tier cities in China
- The acquisition with Tianfang has helped to expand our distribution network and increase our sales channel since Tianfang has more than 60 large-scale sale agents throughout China.
|
|
