Guangzhou Pharmaceutical Holdings Ltd. has two listed companies—Guangzhou Pharmaceutical Co. Ltd. (listed on the Hong Kong and Shanghai stock markets) and Guangzhou Baiyunshan Pharmaceutical Co. Ltd. (listed on the Shenzhen stock market)—as well as up to 30 subsidiaries. In 2009, it shrugged off the global financial crisis and maintained its development momentum. The group's industrial output totaled 8.414 billion yuan ($1.24 billion) in 2009, rising 10.73 percent year on year. Its sales revenue and profits last year topped 22.79 billion yuan ($3.38 billion) and 639 million yuan ($95.28 million), respectively, up 11.73 percent and 11.4 percent year on year.

Guangzhou Pharmaceutical produces more than 1,000 Chinese and Western medicines, with 65 traditional Chinese medicines included in the lists of national or provincial quality products. And of these, 45 are under state protection and 20 are solely produced by the company.

Seven of its medicines have annual sales exceeding 100 million yuan ($14.8 million). In 2009, its export value grew 11.74 percent year on year.

R&D abilities

In 2009, the company applied for 32 domestic patents, three international patents under the Patent Cooperation Treaty, and two American patents. In April 2010, the company's cephalosporin amidine hydrochloride, a kind of antibiotic, received a U.S. patent. Before 2009, the company had only received 24 domestic patents and six international patents.

In 2009, the company applied for 44 key scientific research programs, including 10 at the state-level, eight at the provincial level and 22 at the city level.

Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Co. Ltd., a subsidiary of Guangzhou Pharmaceutical, and Zhong Nanshan, an academician of the Chinese Academy of Engineering, jointly established the first domestic TCM anti-virus research institute, which has won financial support from the U.S. National Institutes of Health.

So far, the company has established post-doctoral research programs with a number of research institutes, including Guangzhou Baidi Biotechnology Co. Ltd. and a laboratory for non-clinical drug safety evaluations.

Guangzhou Pharmaceutical has also taken the lead in various medical and pharmaceutical fields in the domestic market. The cephathiamidinum, another kind of antibiotic developed by its subsidiary Baiyunshan Pharmaceutical, was awarded the second prize in a national technology invention competition in 2006. The semisynthetic cephalosporin is China's first pharmaceutical indigenous innovation, displaying the company's expertise and potential.

Industrial insiders are optimistic about the pharmaceutical giant's mission to develop medicines and treatments against lethal future outbreaks of viruses and diseases. However, some are skeptical about the five-year deadline. "It takes Western pharmaceutical giants 10 or more years and no less than $1 billion to develop new medicines. But Guangzhou Pharmaceutical's plan to make a breakthrough in five years with only $7.45 million might just be a castle in the sky," said an industrial insider who declined to be named.

China's Top 10 Pharmaceuticals

1. Shanghai Pharmaceutical (Group) Co. Ltd.

2. China National Pharmaceutical Group Corp.

3. Guangzhou Pharmaceutical Holdings Ltd.

4. Tianjin Pharmacy Group Co. Ltd.

5. Shandong Dong-e E-jiao Group

6. Harbin Pharmaceutical Group

7. Nanjiing Pharmaceutical Co. Ltd.

8. North China Pharmaceutical Group Corp.

9. Jiangsu Yangtze River Pharmaceutical Group

10. Taiji Group Co. Ltd.

(Source: ata.icxo.com)