Based in the city of Yantai, China, Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB: BOPH) is a growing and profitable pharmaceutical company engaged in the production, manufacturing and distribution in China of traditional Chinese medicines (known as TCM).

Bohai currently produces 10 TCM pharmaceutical products, all derived from herbal and organic sources, including both prescription and non-prescription over-the-counter (OTC) medicines. These medicines address a number of areas of health and wellness, including respiration, rheumatism, digestion, cardiovascular/heart health, cerebrovascular/brain health, gynecology, injury healing, general health supplements, flu, antiviral applications and antibiotics. In addition to the 10 medicines currently in production, Bohai holds the rights to produce 19 other herb-based pharmaceutical formulations and may commence manufacturing and distribution of these additional products when business conditions are advantageous.

Bohai’s strategy is to leverage the protected status of a number of its pharmaceutical products that grant Bohai exclusive or near-exclusive manufacturing and distribution rights in China to aggressively increase market penetration throughout the world’s most populous nation. By utilizing its distribution platform, which includes approximately 300 sales representatives in 20 offices throughout China, and by utilizing mass media and other marketing methods to build awareness of its brand, Bohai will seek to grow its revenues and earnings.

Bohai is also seeking to capitalize on recent and significant changes in Chinese national healthcare policies which have become a national priority in China. Recent data shows government spending on healthcare is projected to increase 44% annually over the next two years. Bohai’s business strategy is to leverage new government program establish in early 2009 which are designed to:  (1) extend health insurance coverage to over 90% of China population by 2011 and (2) expand the number of traditional Chinese medicines eligible for reimbursement under national medical insurance programs. Bohai believes that these trends, as well as the PRC government’s encouragement of the use of TCM and its approach to wellness and treatment of disease, position Bohai to continue to expand its customer base and create the potential to drive further company growth.