Monday, February 1, 2010

Sinobiopharma Inc.’s (SNBP.OB) Flagship Product Covered by China’s Basic Medical Insurance

Sinobiopharma Inc. is a fully integrated specialty biopharmaceutical company in one of the world’s fastest growing pharmaceutical markets – China. Known as Dong Ying (Jiangsu) Pharmaceutical Company Ltd. in China, the company’s current therapeutic focus is on cardiovascular drugs and anesthesia-assisted agents.

The company announced today that the Chinese government has approved the company’s flagship product, Ku Tai (Cisatracurium Besylate) for coverage under National Basic Medical Insurance, Employment Injury Insurance and Maternity Insurance. Sinobiopharma’s flagship product, which has been on the market since 2006, had not been covered by any medical insurance before the Chinese government granted approval for its inclusion on the list of insured drugs on November 27, 2009.

Before coverage was approved, patients who chose Ku Tai – a skeletal muscle relaxant used for surgery and used in more than 1,000 hospitals located in almost every province, did so at their own expense. National Basic Medical Insurance will now provide for patients to be reimbursed for any use of Ku Tai. This insurance is part of China’s major healthcare reform plan. Under this plan, more than 90 percent of its urban population of 600 million will be covered by National Basic Medical Insurance by the end of 2010.

Similar drugs from Sinobiopharma’s competitors were already covered by insurance. But even with this competitive disadvantage, Ku Tai still managed to gain significant market share because of its greater efficacy and superior safety profile. The company expects Ku Tai’s inclusion on the list of insured drugs will drive a significant increase in Ku Tai’s sales volume and further gains in market share.

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