Investment Summary

• Strong sales network with increasing direct academic promotion;
• Professional management and sales team with good control over selling cost；
• Promising pipeline is likely to serve as future growth momentum.

Business Overview

China Medical System (CMS) is a China-based pharmaceutical services company, engaged in the marketing, promotion and sale of prescription drugs of overseas and domestic specialty pharmaceutical companies. CMS was founded in 1995 and listed on HK main board in 2010. In 2002 it started to promote drugs namely Deanixt (for mild to moderate depression and anxiety) and Ursofalk (for dissolution of cholesterol gallstones in the gallbladder) in China, and now has 19 main products sold in PRC market. Its sales achieved FY12-16 CAGR of 28.9% with net profit recording FY12-16 CAGR of 26.6%.