China Pharmaceutical Group Limited (HKG:1093), Hua Han Bio-Pharmaceutical Holdings Ltd. (HKG:0587) and SINOPHARM HOLDING CO LTD (HKG:1099) are the Pharma giants in China that keep bringing down the cost of medications. These tycoons are securing the emerging health needs of the Chinese people and are getting well paid for their efforts.

Sinopharm is China’s largest distributor and provider of supply services for healthcare and pharmaceuticals. The company is involved in logistics, retail, manufacturing and scientific research as well. Sinopharm is leading the way in China by setting an example of responsibility and efficiency in pharmaceutical work. The company is also accomplishing dramatic revenue increases and a volume driven high priced stock. Aside from healthy profit margins, the company has been seen fighting SARS in 2003, battling floods in 1998 and at numerous other national disasters. Sinopharm has a market cap of $66.24 billion and is currently traded at $29.25 per share.

Hua Han Bio-Pharmaceutical Holdings Ltd. has many production facilities in China and can produce billions of capsules per years. The company has 28 production lines and has a far-reaching distribution and sales network with representatives in 29 provinces throughout China. Hua Han employs over 1,000 employees and is pushing for the development of more products for women. Hua Han has a market cap of $4.03 billion and their stock is currently trading at $2.53 per share

China Pharmaceutical Group Limited is one of the largest pharmaceutical companies in China. The company manufactures vitamin C, penicillin G and 7-ACA in bulk and is one of the largest manufacturers of drugs in the world. China Pharm owns well organized distribution networks in China. The company also sells cefazolin and amoxicillin in different dosages and forms. Bringing investors to the table has not proven to be a problem because they opened the door to investors in 1994 when they were listed on the HKEX. Breaking down the barriers of globalization has been a large part of the company’s reputation. China Pharm has a market cap of $6.65 billion and their stock is currently valued at $4.33 per share.

These companies are dominating a market that has emerged in China and meeting the needs of the sick. China is developing economically and also has health problems. Now that the market is more fully developed and Chinese citizens have a healthy portion of purchasing power, they are bound to focus their cash flows on another aspect of healthy living. These companies may have started off with modest budgets, but are now bringing in the dough. Some of these companies have been with the People’s Republic of China since the 1970’s and are only recently turning a big profit. However, longevity has offered these companies an opportunity in practicing what they know in a market that has developed throughout the last decade. Integrity and hard work are the staples of good business, and the benefits for these companies are double digit profit margins.

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