The USD 1bn Saudi pharmaceutical market is structuraly well positioned to benefit from growing population and rising demand fo health care in the region. The local players remain focused on basic medicines but this is no bad place to be in a country where the governement has only recently become focused on the cost of treatment. br /br /There are 27 pharmaceutical manaufacturing companies in the Kingdom. The largest are Saudi Pharmaceutical Insdustries and Medical Appliances Corporation (SPIMACO), TABUK, Al Jazeera, Dal Al Dawa and Riyadh Pharma. Riyadh is the fastest growing. SPIMACO is our prefered listed name with over 170 brands under license from names such as Eli Lilly, Schering-Plough and GlaxoSmithKine.br /br /Saudi Arabia is on the USTR Watch List for infringement of intelectual property rights.

China Pharma Holdings Inc. (OTCBB: CPHI) develops, manufactures and markets generic and branded specialty pharmaceutical products in China. The company today announced its third-quarter results for the period ended September 30, 2008, marking significant increases in revenues and net income.

China Pharma posted a 52 percent increase in revenues, reported at $12.61 million, up from $8.29 million for the same quarter last year. The company attributes this to its expansion of marketing and promotional activities implemented to boost sales of existing products and the introduction of new ones. Revenue for the nine months ended September 30, 2008 rose 47% year-over-year.

“We are confident that our continued strong revenue growth for the third quarter of 2008 is a reflection of our focus on the largest segments of China’s pharmaceutical market, in disease areas of high incidence and high mortality. Our rapid growth is supported by the ongoing delivery of new products, product

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viastockadvisors

Leading quantitative analyst Vahan Janjigian looks to American Oriental Bioengineering, a maker of Chinese traditional medicines, among his latest featured stocks.

tracks his picks at:

http://trackthepros.com/

In his Forbes Growth Investor, the advisor explains, “This market has enjoyed significant growth over the past several years due to several favorable trends.” Here’s his review.

“Investment risks include the planned issuance of $115 million of convertible bonds,which could dilute future earnings; and the sometimes capricious nature of Chinese laws and regulations.

“However, we are focused more on potential growth. Organic sales should rise 30% in 2008. Total sales growth should exceed 50%. Net income is expected to climb at least 43%.

“The company has set aside $16.4 million to fund acquisitions that are already in the pipeline. These expected acquisitions should help AOB build scale and expand market share in China’s fragmented pharmaceutical and nutraceutical markets.”

“American Oriental Bioengineering is a pharmaceutical company that specializes in

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In last quarter’s letter, we discussed the Fund’s purchase of shares of Sanofi-Aventis S.A. (“Sanofi”), one of the largest pharmaceutical companies in the world. Numerous issues which are clouding the outlook for the pharmaceutical industry – including a stricter Food and Drug Administration, the upcoming Presidential Election in the U.S., intensifying generic competition, and the ongoing push by governments to contain health care costs – in addition to company specific issues, enabled Fund management to purchase shares of this well-financed, highly profitable and cash generative business at what we believe is an attractive valuation, without attributing any value to Sanofi’s pipeline. While we believe Sanofi represents an attractive investment opportunity for the Fund on a stand-alone basis, the company, and the pharmaceutical industry ingeneral, are subject to inherent uncertainties whose outcomes are difficult to predict with a high degree of certainty.

One of the most notable of these uncertainties is

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American Oriental Bioengineering, Inc.'s (AOB) second-quarter financials were strong and exceeded our expectations. We expect the company to continue to deliver strong performance in the coming quarters due to relatively high growth in the Traditional Chinese Medicine (TCM) market in China. We maintain our Buy rating on the shares.

The company targets two rather large markets in China: the TCM pharmaceutical market and nutraceutical market. We view AOB as a China play stock and growth story. In the past few years from 2003 and 2007, the company achieved more than impressive top line CAGR of 66.6%. EPS grew from $0.15 in 2003 to $0.60 in 2007, a CAGR of 42.7 percent. Both topline and bottomline continued to grow in the first quarter of 2008.

We believe the company will ride the wave of Chinese economic growth and increased healthcare spending in the next few years. We think American Oriental will also

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