Two Subsidiaries of Fosun Pharmaceutical Obtained the Major Project Support

Two projects submitted by two subsidiaries of Fosun Pharmaceutical were accepted as major support project in the Independent Innovation and High-Tech Industry & Development by Shanghai Development & Reform Commission, and obtain the support for project approval and initiation.

One is the industrialization project for new generation anti-virus & anti-fungal products such as Penciclovir by Shanghai Fosun Zhaohui Pharmaceutical Co., Ltd.; the other one is Baoshan R&D and Production Bases for vitro diagnostic products by Shanghai Fosun Pharmaceutical Long March Medical Science Co., Ltd. They were officially publicized with the first batch of Conversion Projects for Bio-Pharmaceutical Industry 2009 in the Shanghai Bio-Pharmaceutical Industry Promoting Meeting in Shanghai Exhibition Center on Aug. 3^rd.

As long as these projects completed, the production level will be developed and standardized greatly, the capacity will be expanded, and the advantages of R&D will be feasibly converted into the advantages of industry development.

The establishment of Baoshan R&D and Production Bases for vitro diagnostic products can help Fosun Pharma meet the requirements of anti-virus & anti-fungal products R&D and industrial development of for the next 10 years.

In the near future, the subsidiaries of Fosun Diagnostics: Shanghai FOSUN Medical Technology Development Co., Ltd,, Shanghai Long March Medical Science Co., Ltd. and Shanghai Fosun Biolog Biotech Co., Ltd.., will be moved to New Baoshan R&D and Production Bases. This can optimize and integrate the affiliated resource, further expand the market share of Fosun Diagnostics products in domestic and international marketing, as well as enhance the reputation & status of Group & Brand of Fosun Pharmaceutical, thus make contribution toward China Healthcare.

To carry out the strategic deployment of promoting Shanghai High-Tech Industry by Shanghai Municipal Committee of CPC and Shanghai Municipal Government, Shanghai Science & Technology Commission and Shanghai Development & Reform Commission brought out Development Action Plan for Shanghai Bio-Pharmaceutical Industry (2009-2012 year) (hereafter referred to as Action Plan ).

The Action Plan defined the overall goals of Bio-Pharmaceutical Industry development: by the end of 2012 year: enable Shanghai Bio-Pharmaceutical Industry to achieve the goal of 3211 , and successfully & initially establish Domestic Bio-Pharmaceutical Production Center/ Business Center and R&D Center for innovation products in Shanghai, so as to realize the bio-Pharmaceutical industry economic output up to 200 billion RMB, assist with 100 innovative enterprises with annual output over 200 million RMB, as well as build 100 competitive high-tech flagship products with sales revenue over 100 million RMB respectively.

Mr. Shen Weizhong, Administrative Vice Chairman of Technical Center of Fosun Pharmaceutical (Group) Co., Ltd, who was responsible for the submission of the projects, expressed that Shanghai Bio-Pharmaceutical Industry will be the Pillar industry in Shanghai High-Tech Industry according to deployment of Shanghai Municipal Committee of CPC and Shanghai Municipal Government. Fosun Pharmaceutical will grasp the opportunity, and actively develop & study more key products and promote their industrialized production. Fosun Pharma will infuse more energy into the development of Shanghai Bio-Pharmaceutical Industry, based on enhancing the company s competitiveness in Pharmaceutical Industry.