Lotus Healthcare Inc.

Weihai Lotus Pharmaceuticals is a successful, fast growing wholly owned subsidiary of Lotus Healthcare with its GMP approved manufacturing base located in Weihai City, Shandong Province. The company is one of a very select few businesses which have been approved by the Chinese Authorities to manufacture and market medicines containing narcotic substances. Weihai Lotus has for several years been marketing its product Galake® which is an oral analgesic containing dihydrocodeine and paracetamol. The company has also received Government approval to develop products containing Morphine and has recently received marketing approval for its SRM-Rhotard, a sustained release morphine sulphate tablet subject to bioavailability clinical testing. Weihai Lotus has been granted by the China Government rare licenses to develop a pipeline of products containing Hydrocodone, Naloxone and Naltrexone and currently holds Import Licenses for dihydrocodeine and morphine APIs.

The Weihai site occupies an area of some 4 acres and includes pharmaceutical production areas, office buildings, warehousing and laboratories with a total built-up area of 13,000 m². By carefully selecting locally produced equipment and importing some of the main production equipment the right blend of cost containment, high quality and reliability has been achieved.

The Company’s sales and marketing activities are managed out of the Beijing Office. Weihai Lotus employs a sales force of 50 experienced medical representatives who sell primarily in hospitals in over 70 Cities in 20 Provinces throughout China. Medical Representatives are allocated several hospitals and are responsible for promoting the company’s products directly to the medical professionals in those hospitals. The reps, or in larger cities their supervisors, also make and maintain contact with the chain of distribution companies who distribute medicines all over China. Promotional activities include medical seminars, advertising and the all important relationship building. Customers and medical professionals are invited to Weihai frequently to visit the Company headquarters and manufacturing plant.

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