SHANGRI-LA COUNTY, China, April 19, 2011 /PRNewswire/ -- Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today announced the release of an in-depth initiation report by Patrick Murphy, CFA, principal of fee-based, third-party research firm Murphy Analytics.
In his report, Mr. Murphy discusses Tibet Pharmaceuticals, its current portfolio of five traditional Tibetan medicine products, and initiates coverage with a 12-month price target of $11.00 per share.
"Tibet Pharmaceuticals is addressing the increasing demand for pharmaceutical and healthcare products in China, through our growing sales initiatives and portfolio of five SFDA-approved medicines," said Taylor Guo, Chief Executive Officer of Tibet Pharmaceuticals. "This comprehensive report provides investors with an excellent overview of Tibet Pharmaceuticals' unique strengths: from our strong research and development capabilities, our access to abundant raw materials not generally available outside the Tibetan geographical region and our significant potential for expansion based on our mission to grow both organically and through accretive acquisitions in 2011."
From the Murphy Analytics Research Report, Mr. Murphy states:"Declared a 'national strategic industry' in the PRC, traditional Chinese medicine ('TCM') enjoys governmental support and is considered mainstream medicine in China, accounting for 21% of all medicine sold domestically. Although it represents a small percentage of the overall TCM market currently, traditional Tibetan medicine is growing at an estimated 50% per year, according to one estimate." The report details the significant growth projected in China's traditional Tibetan medicine market, which benefits from rising individual wealth, an aging population, and PRC policy combined with domestic market forces that are expected to increase consumer spending on healthcare in China to $600 billion by 2015, a 3-fold increase over 2000. Murphy Analytics also explains how Tibet Pharmaceuticals is attempting to translate this growth into future results, even at what Murphy Analytics considers conservative growth projections. "Murphy Analytics estimates that the Company will deliver $14.3 million in income from operations, assuming only 10% revenue growth, which seems conservative relative to historical results," explains Mr. Murphy. "Given the conservative growth assumption and the additional $0.24 per share in expected tax savings for TBET for 2011, Murphy Analytics is initiating coverage on TBET with an $11.00 twelve-month price target." The complete report is available in Acrobat format, free of charge: