American Oriental Bioengineering Announces the Inclusion of 158 Drugs in China's National Insurance Catalog
December 18 2009 - 9:00AM
PR Newswire (US)
-- Jinji Capsule, Flagship Women's Health Product, Newly-Added --
-- 82 Class A Drugs and 76 Class B Drugs Selected -- NEW YORK, Dec.
18 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering,
Inc. (NYSE:AOB), ("the Company" or "AOBO"), a pharmaceutical
company dedicated to improving health through the development,
manufacture and commercialization of a broad range of prescription
and over the counter ("OTC") products, today announced that 158 of
the Company's drugs have been included in China's National
(Medical) Insurance Catalog (the "2009 NIC"). Of these, 82 are
categorized as Class A drugs and 76 are categorized as Class B
drugs. Most importantly, Jinji Capsule, AOBO's best selling
national branded product, has been added to the 2009 NIC since its
last publication in 2004. The 2009 NIC was released by China's
Ministry of Human Resources and Social Security on November 30,
2009 as part of China's healthcare reform. According to the Chinese
government, ninety percent of China's citizens will be covered by a
universal healthcare system by the end of calendar 2010. As China's
official drug reimbursement list, the 2009 NIC features 2,151
drugs, which are categorized as Class A (fully covered) or B
(partially covered). All drugs are classified into three
categories: 1) Western Chemical Drugs (349A+791B); 2) modernized
Traditional Chinese Medicine (TCM) (154A+833B); and 3) TCM
decoction pieces. The implementation of the plan is required
immediately for Class A drugs and by 3/31/10 for Class B drugs. Mr.
Tony Liu, Chairman and Chief Executive Officer of American Oriental
Bioengineering, commented, "We are very honored that a total of 158
drugs produced by our five subsidiaries have been included in
China's National Insurance Catalog. Of these, 82 products are fully
reimburseable as Class A drugs and 76 qualify for partial
reimbursement as Class B drugs. We are especially pleased about the
inclusion of our best-performing and flagship women's health
product, Jinji Capsule, in the NIC. Jinji Capsule is a widely
recognized product to treat gynecological inflammation, including
endometritis, annexitis and pelvic inflammations. Based on
government data, 147 million women in China suffer from
gynecological inflammation, and we believe that partial
reimbursement for this drug will boost sales of Jinji Capsule
nationwide." Mr. Liu continued, "The 2009 NIC is a vital guideline
for the expanding universal healthcare system, which aims to cover
the vast majority of the population. The NIC will be fully
implemented in 2010, making more drugs affordable and greatly
expanding the addressable pharmaceutical market in China. We
believe that the inclusion of our products in the NIC, in addition
to further increasing brand recognition, will hasten our expansion
into key therapeutic areas." About American Oriental
Bioengineering, Inc. American Oriental Bioengineering, Inc. is a
pharmaceutical company dedicated to improving health through the
development, manufacture and commercialization of a broad range of
prescription and over the counter products. Statements made in this
press release are forward-looking and are made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995.
Such statements involve risks and uncertainties that may cause
actual results to differ materially from those set forth in these
statements. The economic, competitive, governmental, technological
and other factors identified in the Company's filings with the
Securities and Exchange Commission, including the Form 10-K for the
year ended December 31, 2008, may cause actual results or events to
differ materially from those described in the forward looking
statements in this press release. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether because of new information, future events, or
otherwise. DATASOURCE: American Oriental Bioengineering, Inc.
CONTACT: Ashley M. Ammon of Integrated Corporate Relations, Inc.,
+1-646-277-1200
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