Dragon Pharmaceuticals Marketing

Marketing Strategy

Dragon’s strategy of first accessing China and other non-patented countries allows it to generate very substantial revenues from the developing world prior to patent expiries in, and our subsequent access to, the North American, European Union, and Japanese markets.

China Market

• Dragon has made significant progress in penetrating China’s EPO market and currently holds a 30% market share position. As the only EPO producer in China to have been awarded official endorsement by the Chinese Medical Association (CMA), Dragon’s distribution network now covers over 200 hospitals that together represent 75% of the kidney dialysis facilities throughout China.

Non-patented Markets

• To date, we have partnered with 11 international licensees for the distribution of EPO throughout Central and Eastern Europe, Southeast Asia, Latin America and the Middle East. Our partners are established pharmaceutical companies with strong regulatory and marketing expertise within their respective markets, and will be key to Dragon’s success in securing product approval and substantial penetration into these markets.

Currently patented Markets

• In anticipation of the 2004 expiry of the EPO gene patent, we are seeking to establish co-development and marketing partners to assist us in gaining access to the European following patent expiry.

Distributors

To date, we have partnered with 11 international licensees for the distribution of EPO throughout Central and Eastern Europe, Southeast Asia, Latin America and the Middle East. Our partners are established pharmaceutical companies with strong regulatory and marketing expertise within their respective markets, and will be key to Dragon’s success in securing product approval and substantial penetration into these markets.