Medicine & Health

 

1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Guiqi Bone-strengthening particle is Korean medicine researched and developed by Jilin Ruilong Pharmaceutical Co., Ltd. in cooperation with the Institute of Yanbian Korean Medicine. It is the product processed by summarizing the clinical experience of Yanbian Korean People through modern Chinese medicine technology, and it is specialty product in Yanbian Korean area. Guiqi Bone-strengthening particle is pure Chinese medicine with exclusive intellectual property rights produced by Jilin Ruilong Pharmaceutical Co., Ltd. In addition, it is national CPI OTC drug, with functions of supplementing qi, nourishing the liver and kidney, strengthening sinews and bones. The drug is effective, non-toxic, without side effects, suitable for long-term use, and is rare drug for the prevention and treatment of osteoporosis. In the individual market test marketing period, it is praised by users.
1.1.2 Market Prospects
Osteoporosis is a disease that is threatening the health and quality of life of the elderly, and it has become the third age-related diseases after high blood pressure, diabetes. According to statistics, there has been about 70 million osteoporosis patients and 210 million cases whose bone mass is below the normal standard
People's current awareness and prevention of osteoporosis, as well as treatment awareness is not strong. According to statistics, only 36% of patients will go to the hospital after the symptoms appear and know they have osteoporosis after. Most consumers do not know they are suffering from osteoporosis. For patients by non-hospital sources that they are suffering from osteoporosis, 86% would not choose to go to the hospital, only when the symptoms become clear would they go to the hospital. At the same time, 71% of people will take "sports" as a treatment after they are suffering from osteoporosis. In terms of drug treatment, 62% of people choose calcium, with less use of other medications for osteoporosis, only 16%.
With the world’s publicity and education on the importance of osteoporosis prevention and treatment, currently the world's peoples are constantly recognizing the universality and the dangers of osteoporosis, and in the treatment of osteoporosis, they are also gradually changed from passive treatment to active prevention and therapy. In the future treatment of osteoporosis, there will certainly be more and more people to going to the hospital for treatment spontaneously or carry on early prevention.
Before twenty-first century, the drugs used for the treatment of osteoporosis are calcium preparations, calcitonin, bisphosphonates, vitamin D, hormone replacement therapy and androgen six kinds.
Into the twenty-first century, the world trend gradually formed an advocate of natural medicine, traditional therapies. From the point of view of modern pharmacology, herbal treatment of osteoporosis role is multifaceted, roughly as follows: (1) directly promote osteoblast proliferation; (2) inhibition of osteoclast formation; (3) hormone-like effects; (4) elevated hormone levels; (5) strengthening kidney hydroxylase system, promoting intestinal absorption of calcium and phosphorus particles; (6) adjust the balance of trace elements in vivo environment, the bone structure of the mechanical characteristics can be strengthened. It is worth noting that the biggest advantages of the treatment of osteoporosis with Chinese medicine compared with western medicine treatment are: (1) two-way adjustment both inhibiting bone absorption and bone formation; (2) avoid adverse side effects in western medicine treatment process.
In China, people's living standards continue to improve, health and health awareness is continually strengthened. Although chemical drugs have quick effect, in long-term use, the harm caused by side effects far outweighs its benefits. Therefore, scholars in international Osteoporosis circle advocate: do not use chemicals such as estrogen drug as the routine drug for the prevention and treatment of osteoporosis. Chinese medicine, with its safe, non-toxic side effects, is gradually occupying a larger osteoporosis drug market
1.1.3 Technical Analysis
Guiqi Bone-strengthening particle is proprietary variety of China. At present, this project has completed the preparation process, quality standards, stability testing, toxicology tests, pharmacodynamics etc. pre-clinical and clinical research, and has won the production numbers; it is in the test marketing stage.
1.1.4 A dvantageous Conditions and Necessity of Project Construction
1 T he policy conditions
Economic restructuring and industrial upgrading during the 13th Five-Year is the middle background of pharmaceutical industry, and the specific plans of pharmaceutical and biotech industry are: vigorously develop biotech drugs used for prevention and treatment of major diseases, new vaccines and diagnostic reagents, chemicals, and modern medicine etc. innovative medicines, improve the level of bio-pharmaceutical industry. Accelerate the research, development and industrialization of advanced medical equipment, medical materials and other bio-medical engineering products, promote large-scale development; promote bio-manufacturing key technology development, demonstration and application.
In the “13th Five-Year” background, biomedicine will become one of the four pillar industries of the national economy emerging industries. The expansion of the medical needs is the basic power of the emergence of industry. The policy guidance of medical reform will release the demand. Meanwhile, with the industrial upgrading curtain being opened, the evolution of the industry will accelerate, and standardization and centralization is the natural choice.
(2) Technical superiority
Technology Innovation: Guiqi bone-strengthening particle uses dynamic extraction equipment, the entire extraction process is under continuous closed environment, liquid and dregs are run in closed conduits, atmospheric extract low-temperature vacuum concentrated has incomparable superiority than static extraction of conventional fractionated extraction and then concentrated. Separation technology uses macroporous resin and high-speed separation equipment imported from Japan for separation and purification. Granulation uses spray-drying granulation mixing technology, instead of the traditional wet granulation, hot air drying, and the mixing step operation.
Variety innovation: Guiqi bone-strengthening particle is the achievement of national invention patent for the treatment of osteoporosis, with functions of supplementing qi and blood, nourishing the liver and kidney, strengthening sinews and bones. The drug is effective, non-toxic, without side effects, suitable for long-term use, and is rare drug for the prevention and treatment of osteoporosis. And the drug has the characteristics of a high starting point, high-tech content. And pharmacological experiments prove that the product also can prevent the recurrence of osteoporosis, and it is a rare drug for treating osteoporosis.
Quality Control Technology Innovation: Guiqi bone-strengthening particle has formulated measurement of stilbene glucoside content. It adopts HPLC to test known composition; the study proved that determination of the method is stable, reproducible, without interference, which further improves the product quality control, and strictly ensures product quality.
Product performance and effects are significant: Guiqi bone-strengthening particle is an exclusive variety belongs to Ruilong Jilin Pharmaceutical Co., Ltd. According to surveys, it is praised by patients at home in two years of test marketing. Jilin Ruilong Pharmaceutical Co., Ltd. has applied for national patent in respect of the project.
(3) Personnel, market share advantage
In the past test marketing period, the product has achieved results in clinical applications. It is welcomed by the pilot hospital staff and patients, which also brings some economic return for the company. The company founds academic department, hires qualified domestic experts to carry out a series of clinical trials, clinical exchanges, which promotes the rational use of the product.
Jilin Ruilong Pharmaceutical Co., Ltd. belongs to Jilin Huakang Pharmaceutical Co., Ltd., and in the group, pharmaceutical marketing has already had two decades of experience; a fairly complete marketing system has been established, and in the country, there are over 240 prefecture-level cities having established a marketing agency, with thousands of marketing personnel spread all over the country, with very strong marketing team advantage.
The company has set up direct marketing center in Changchun, established a drug e-commerce platform. Internet marketing has gradually changed the consumers’ buying habits, and has become a trend and direction of commodity marketing, and drug network marketing is also bound to have huge opportunity. Guiqi Bone-strengthening particles, in the development of the traditional network marketing advantages, carries out network marketing, which will certainly promote the rapid rise in sales.
 (4) Current production conditions
This project is a renovation and expansion project, and its current annual production capacity is 200 million tablets, 200 million capsules, and 3 million granules bags. The transformation is implemented in the existing plant. The company covers an area of 21,000 square meters; there is room for expansion transformation, with relatively low construction costs.
(5) The situation of upstream and downstream products
The main raw material in this project is Chinese herb medicine in Changbai Mountain area. Dunhua City is located the hinterland of Changbai Mountain, with adequate raw materials.
The packing raw material needed in Guiqi bone-strengthening particle has adequate supply in the domestic market, fully meeting the production needs of Ruilong Pharmaceutical.
The water, electricity required for this project is provided by Dunhua City Economic Development Zone; the gas in production and life is provided by the enterprise itself, fully meeting the needs of the project construction.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scheme and Scale
By implementing of Guiqi bone-strengthening particle patented technology industrialization project, it will construct plant of 12,100 square meters, with annual production capacity of 200 million tablets, 200 million capsules, and 60 million granules bags.
1.2.2 Construction Content
The project is constructed in three phases; within five years, it will complete renovation and expansion of the plant of 9100 square meters, build new plant of 3,000 square meters, and add 200 sets of new equipment.
1.3 Forecast of Economic and Social Benefits
1.3.1 Major Indexes for Forecast of Economic Benefits (detailed in table 1)
Table 1:     List of main indicators for financial benefits forecast
No.
Name
Unit
Indicator
Remarks
1
Sales income
Ten thousand yuan/a
13500.00
Normal year
2
Total profit
Ten thousand yuan/a
2747.25
Normal year
3
Financial internal rate of return of all investment
%
23
After income tax
4
Financial net present value Ic=10%
Ten thousand yuan
5292.2
After income tax
5
Payoff period of all investments (after tax)
a
4.64
Including construction period of 1 year
Note: the “ten thousand yuan” in the table is in RMB.
1.3.2 A nalysis of Social Benefits
Guiqi bone-strengthening particle is pure Chinese medicine with independent intellectual property rights for treatment of osteoporosis, produced by Jilin Ruilong Pharmaceutical Co., Ltd. It has effects of supplementing qi and blood, nourishing the liver and kidney, sinews and bones. The drug is effective, non-toxic, without side effects, suitable for long-term use, and is rare drug with prevention and treatment of osteoporosis.
The successful implementation of this project will expand the company's existing scale, infuse new blood to enterprises, increase revenue of enterprises, and bring new opportunities for the development of enterprises. It will promote the rapid development of the local economy, adding 200 jobs. Meanwhile, the project will also drive the development of related manufacturing, printing, packaging, advertising industry, providing a stable source of benefits for upstream medicinal planting industry. In addition, it solves the employment problem of some laid-off workers, with some social benefits.
1.4 Total Investment and Funds Raising of the Project
1.4.1 Total Investment of the Project (detailed in table 2)
Table 2:      List of Total Investment of the Project      Unit Ten thousand yuan
No.
Name of Expense
Investment Amount
Percentage to Total Investment%
Remarks
1
Construction investment
7700
77
 
2
Interest incurred in construction period
200
2
 
3
Working capital
2100
21
 
 
Total Investment of the Project 1+2+3
10000
100.00
 
1.4.2 Funds Raising
Equity financing.
1.5 Ways of Cooperation
Joint venture, cooperation or other means.
1.6 What to be Invested by Foreign Party
Funds or other means, negotiated by both sides.
1.7 Construction Site of the Project
Dunhua Economic Development Zone of Jilin Province
1.8 The On-going Condition of Project
At present, it has completed part of the investment, with the current production capacity of annual output of 200 million tablets, 200 million capsules, and 3 million granules bags.
2. Introduction to Partner
2.1 Basic Conditions
Project Sponsor Name: Jilin Ruilong Pharmaceutical Co., Ltd.
Legal address: Dunhua Economic Development Zone of Jilin Province
Legal representative: Hu Junhui
Enterprise Ownership: Limited liability.
2.2 Overview of Project Undertaker
Jilin Ruilong Pharmaceutical Co., Ltd. is located in Dunhua City, at the foot of Changbai Mountain, and in Yanbian Korean Autonomous Prefecture of Jilin Province along the Mudanjiang River. The company is formerly known as Dunhua Changxian Pharmaceutical Factory. After the reorganization of assets in 1998, it was restructured into a joint-stock company, renamed Jilin Ruilong Pharmaceutical Co., Ltd. The company has a registered capital of 11.5 million yuan (RMB); the company covers an area of 21,000 square meters, with construction area of over 7000 square meters; the company sets up one office and nine administrative departments, with one production workshop, with annual production capacity of 200 million tablets, 200 million capsules, and 3 million granules bags.
The leaders of Jilin Ruilong Pharmaceutical Co., Ltd. have strong sense of science and technology, attaches great importance to corporate research and development investment, with strong overall research and development (R & D) and technological innovation capability, and the annual R & D investment is more than 5% of total sales that year.
The company always adheres to the policy of "pursuit of excellence, commitment to health services”. The products are produced according to national standards for drugs, and prescription drug sales network runs across 31 provinces, autonomous regions and municipalities. The leading products: Weishuning particles, Tongmai particles, Lee nose piece, Kangguzhengsheng films, which are favored by the majority of consumers, and the market prospect is broad. The company has established long-term relationship with a large number of pharmaceutical companies, and has established a relatively perfect prescription drug sales network.
The project is organized and implemented by Jilin Ruilong Pharmaceutical Co., Ltd. It implements independent accounting. In order to ensure the smooth implementation of the project, the company sets up a project office, and the general manager is authorized by the company to be solely responsible. The project office has 2 senior engineers, 3 engineers, who are responsible for the implementation of the specific organization of the project.
2.3 Contact Methods
Postal Code: 133700
Contact person: Zhu Haijun
Tel: 0433-6266599  13694338288
Fax: 0433-6266599
E-mail: 327101573@qq.com
Contact methods of the project city (prefecture):
Contact unit: Yanbian Prefecture Economic and Technical Cooperation Bureau
Contact person: Duan Xin  Sui Siyu
Tel: 0433-2853431  18686336078
Fax: 0433-2853431
City/prefecture website: www.yanbian.gov.cn
 
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