BMP Sunstone (NASDAQ: BJGP) has proven itself a pioneer that has every intention of conquering China's soaring pharmaceutical markets. At the end of 2004, in the first-ever purchase of a Chinese pharma distribution company by a foreign business, Beijing Med-Pharm (the company's former name) agreed to buy Beijing Wanwei Pharmaceutical Corporation, Ltd., which counted the majority of Beijing's hospitals as its regular customers.
In 2008, the company bought Sunstone Pharmaceutical and changed its name to BMP Sunstone. That merger has been a great fit! Now, BJGP is an American company that is a leader in over-the-counter (OTC) drugs, via its Sunstone subsidiary and pharmaceutical medicines and applications in China, via its Chinese Beijing Med-Pharm subsidiary.
Additionally, the company also offers what it calls "end-to-end solutions" to U.S and Western pharmaceutical companies that want to sell their products in China.
In its OTC division (55% of revenues), BJGP offers pediatric, gynecological and women's health products, sold primarily to retail pharmacies through three very well-established brands, including:
GoodBaby - the number-three branded cold and allergy medicine in China, number one in volume and number two in value.
Confort - top-five brand for vaginal infections in China and in the top 10 brands for external applied medication.
Nemei - its new brand that was created to grow the company's current strength and presence in women's health.
Both the GoodBaby and Confort product offerings are expected to double in the next three to five years.
BJGP's Pharmaceutical Distribution segment (40% of revenues) distributes brand-name and generic Western medicines, Chinese medicines (including TCM—traditional Chinese medicines), bio-chemical medicines, OTC healthcare products and home healthcare supplies and equipment through a distribution network of hospitals, pharmacies and healthcare providers. The Licensed Products segment (5% of revenues) markets licensed prescription drugs to healthcare providers of prescription drugs.
Lastly, the company offers academic and physician-oriented marketing services, market research, and clinical and regulatory services (including clinical trial management), which includes pre-market entry analysis and product registration services to help other firms do business in China.
BJGP has a strong commitment to research and development and aligns itself with top institutions such as Beijing University, Tianjing Institute of Pharmaceutical Industry and Shangdong Institute of Pharmaceutical Industry. These efforts have helped the company recently launch six new medicines.
Why I like BMP Sunstone
A leading participant in a fabulously-growing industry.
Wide product line with great distribution coverage.
Fundamentally strong with track record for excellent revenue growth.
Already meeting government's new standards for most of its product portfolio.
Undiscovered! Just 34.5% of BJGP's products are held by institutional investors, which gives us plenty of opportunity to make out like bandits as they enter the stock and push its price up
