Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB:BOPH), a China-based pharmaceutical company engaged in the production, manufacturing and distribution of Traditional Chinese Medicine (TCM) in China, today announced the release of an in-depth initiation report by Patrick Murphy, CFA, principal of fee-based independent research firm Murphy Analytics.
“Based on the Company's strong historical performance and market position, and an expectation of continued revenue growth and profitability, Murphy Analytics is initiating coverage on BOPH with a 12-month price target of $6.45.”
In his report, Mr. Murphy discusses Bohai, its current portfolio of 15 Traditional Chinese Medicine products, and initiates coverage with a 12-month price target of $6.45 per share.
"Bohai is addressing the increasing demand for pharmaceuticals and healthcare products in China, through our recently expanded TCM portfolio and proactive sales initiatives," said Mr. Hongwei Qu, President and Chief Executive Officer of Bohai Pharmaceuticals. "This comprehensive report quantifies Bohai's progress to date, what we believe is the significant potential for our TCM products in China and our revenue and earnings potential as we seek to continue our past growth into fiscal 2011."
From the Report, Mr. Murphy states, "Among its public health initiatives, the Chinese government officially supports use of TCM to enhance wellness and to treat chronic and acute diseases. This support includes such measures as coverage of TCM pharmaceuticals under national insurance, and declaration of TCM as 'national strategic industry.'"
The report details the significant growth projected in China's pharmaceutical market, which benefits from a growing elderly population, a PRC government that is increasing government healthcare spending to $125 billion by 2011, and direct health care subsidies for urban and rural residents in excess of $57 billion.
"As evidenced by the recently announced expansion of the Company's line of pharmaceutical products, BOPH continues to develop a product offering that should enable the Company to drive ongoing revenue growth," adds Mr. Murphy. "Based on the Company's strong historical performance and market position, and an expectation of continued revenue growth and profitability, Murphy Analytics is initiating coverage on BOPH with a 12-month price target of $6.45."
The complete report is available in Acrobat format, free of charge:
Source : Bohai Pharmaceuticals Group, Inc.