Tongjitang Chinese Medicines (TCM), which is located in Shenzhen, Guangdong Province, is scheduled to make its IPO this week.

As always, the IPO of a Chinese company sheds some light on how the pharmaceutical business is conducted in China.Tongjitang makes modernized forms of traditional Chinese medicines for the Chinese market. That means the company specializes in pill, tablet, gel or powder formulations of traditional herbal medications.

Its main offering is Xianling Gubao, a formulation of barrenwort that is intended for osteoporosis (barrenwort is sometimes used as a ground cover in the U.S.). Xianling Gubao contributed 77% of Tongjitang’s $62.1 million in revenue for 2006.

Although Tongjitang has 10 other products, only three contribute significantly to its revenues: Zaoren Anshen Capsules, an OTC medicine for treating insomnia; Moisturizing and Anti-Itching Capsules, an OTC medicine for treating inflammatory skin conditions; and Dianbaizhu Syrup, a prescription medicine for treating vertigo.

Source:佚名