Technological Innovation: Leading Force for TCM Modernization

The major scope of business for Tasly contains production and sales of TCM series, medical powder and injections, and biomedicine and preparation. The Group is the pioneering enterprise of TCM modernization field in China. It is the first company that puts forward GEP and passes GAP. The sales amount of Cardiotonic Pill has kept ranking No.1 for six consecutive years.

Technological innovation is the only way to get rid of repetitive production and price competition. Ever since its establishment, the Group has put great emphasis on technological innovation and protection on intellectual property rights. In 2006, Tasly became one of the experimental units for national innovation. By the end of that year, the enterprise has applied for 559 patents, 12 PCT international patents.

At present, majority of the profits come from modern TCM series, while the forces promoting the development of the enterprise are the following three aspects: construction of Chinese medical powder and injection, distribution of biomedicine production, and entrance into the international market.

Production of Chinese medical powder and injection represents the highest level of Chinese medicine production; it could effectively solve the bottleneck of purification and stability of clinical Chinese medicine. Now the construction of the platform is taking shape. Four production lines that are capable of producing 8,000 injections per year are put into practice; estimated annual value of production is nearly 80 billion RMB. With the rapid entrance into the market, the production line will begin to earn money from 2008.

Production of biomedicine is an important part for strategic development of the enterprise. The new medicine rhPro-UK will get the certificate and production will start next year. If international strategic investors successfully introduce it into the overseas market, production scale would further expanded.

Cardiotonic Pill gained the approval of FDA IND clinical experiment, and entered into standard international market. Now the medicine is undergoing the Phase II clinical experiment in America, if the medicine meets the demand of the American clinical requirements and the adaptation disease is proved to be effectively cured, the medicine will continue to enter the Phase III clinical experiment.