BOPH - Investor Presentation

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INVESTOR OVERVIEW PRESENTATION

November 2010INVESTOR OVERVIEW PRESENTATION

November 2010



Disclaimer and Forwar d-Looking StatementsDisclaimer and Forwar d-Looking Statements

Statements in this presentation and of the management or representatives of Bohai Pharmaceuticals Group, Inc. (the ³Company´) in

connection therewith that relate to belief s, plans, objectives, goals, expectations, anticipations, intentions and future f inancial condition,

results of oper ations or business performance constitute ³forwar d-looking statements´ within the meaning of Section 27A of the Secur ities

Act of 1933 and Section 21E of the Secur ities Exchange Act of 1934. These forwar d-looking statements are based on management¶s

current expectations about future events. These statements can be identif ied by the f act that they do not relate str ictly to histor ical or current

f acts, and by wor ds such as ³may,´ ³could,´ ³should,´ ³would,´ ³believe,´ ³expect,´ ³project,´ ³anticipate,´ ³estimate,´ ³intend,´ ³plan´ or other

similar wor ds or expressions.

Any or all of the forwar d-looking statements in this presentation or made by management dur ing this presentation may tur n out to be in

accur ate or wrong. This can occur as a result of inaccur ate assumptions or as a consequence of signif icant known or unknown r isks and

uncertainties. The Company addresses these r isks in the ³Risk Factor s´ section of its f ilings with the SEC. Because of these r isks and

uncertainties, the Company¶s actual results may differ mater ially from those that might be anticipated from its forwar d-looking statements.

Therefore, you are cautioned not to place undue reliance on such forwar d-looking statements. The Company undertakes no obligation to

publicly update any forwar d-looking statements, whether as a result of new information, future events or otherwise, except as required by

applicable law.

Also, in presenting this mater ial and responding to inquir ies in connection with the presentation, management may refer to results,

projections, or performance measures that are not prepared in accor dance with U.S. gener ally accepted accounting pr inciples (³GAAP´) as

reported in the company¶s SEC f ilings. You are advised that these results, projections, or performance measures are non-GAAP measures

and are not intended to replace or as a substitute for results measured under GAAP but r ather as a supplement to the GAAP reported

results.

This presentation does not constitute or form part of an offer to sell or issue or invitation to pur chase or subscr ibe for any shares of the

Company in any jur isdiction, and no part of this presentation shall form the basis of or be relied upon in connection with any contr act or

commitment. Specif ically, this presentation does not constitute a ³prospectus´ within the meaning of the U.S. Secur ities Act of 1933, as

amended.

The contents of this presentation may not be reproduced, redistr ibuted or passed on, directly or indirectly, to any other per son or published,

in whole or in part, for any purpose.



³Bohai¶s mission is to capitalize on the

extraordinary economic opportunity

generated by the combination of China¶s

burgeoning middle class, the country¶s

increasing demand for pharmaceutical products and the PRC government¶s

mandated insurance coverage of

Traditional Chinese Medicine.´

Hongwei Qu, Chairman and CEO



The Company The Company

A Growing Producer of Tr aditional Chinese Medicine ± Focused on Domestic

Chinese Market

Approx. 600 Employees,Including 300 in Sales ± 20 Sales Off ices

throughout Mainland China

State-of-the-Art Manuf acturing Facilities

Bohai Pharmaceuticals Group, Inc.



Vital Statistics Vital Statistics

Stock Symbol: BOPH

Exchange: OTCBB/OTCQB

Recent Price: (1) $2.10

52-Week Range: $0.80 to $2.48

Mar ket Cap: $35 million

Shares Out: 16.5 million

Fully Diluted: (2) 28.85 million

Industry: Pharmaceuticals

Headquarters: Yantai, China

Public Since: Januar y 2010

Financings: $12 million concurrent pr ivate placement

Bohai Pharmaceuticals Group, Inc.

(1) As of November 10, 2010(2) Includes outstanding convertible

notes and warr ants



Financial Figures - Annual DataFinancial Figures - Annual Data

Fiscal Years Ending June 30,

2008 2009 2010

Net Revenue $ 37.5 $ 49.3 $ 59.3

Gross Profit 31.6 41.4 49.1

Net Income 6.4 7.9 9.5

EPS

(1)

$ 0.49 $ 0.60 $ 0.64

(2)

(1) EPS represents Basic Ear nings per Share(2) Fully Diluted EPS for FY 2010 was $0.57

All amounts in millions, except EPS

Income Statement



Financial Figures - Quarter ly DataFinancial Figures - Quarter ly Data

Three Months Ending Sept. 30,

2009 2010

Net Revenue $ 14.0 $ 17.0

Gross Profit 11.7 13.6

Net Income 1.9 3.0

EPS (1) $ 0.15 $ 0.18 (2)

(1) EPS represents Basic Ear nings per Share(2) Fully Diluted EPS for Sept. 30, 2010 was $0.15

All amounts in millions, except EPS

Income Statement



China Today China Today

Dr amatic Expansion of National Health Insur ance

± PRC Goal of 90% Cover age by 2011

± Tar geted at Chinese Rur al Population of 900 Million

30% Increase in PRC Health Spending (1)

± $96 B illion in 2008

± $125 Billion by 2011

(1) Sour ce: Epsicom Pharma Business Outlook



China Today (continued)China Today (continued)

Expansion of Elder ly Population

± 170 M illion Elder ly in 2007 (1)

± 230 M illion Elder ly by 2015 (1)

± 5x Medical Spending vs. Younger People (1)

Increase in Tr aditional Chinese Medicine Usage for Wellness

± Growing Concer n Over Pollution and Smoking (2)

± Few Side Effects Compared toWester n Medicines (3)

(1) Sour ce: Euromonitor (2) Sour ce: Wor ld Health Or ganization(3) Sour ce: altMD.com



Anticipated Growth in China¶s TCM Market Anticipated Growth in China¶s TCM Market

In 2013, the market for TCM in China is forecast to have a value of

$21.9 billion, an increase of 36.0% since 2008.Sour ce: Datamonitor 2/2009



Manuf actur ing and FacilitiesManuf actur ing and Facilities

18,000 Square Meter Facility

Meets /Exceeds China¶s ³Good Manuf acturing Pr actices´ (GMP)

± Str ingent Chinese Gover nment Standar d

± Rated for Quality, Pur ity and Safety

± Recently Recertif ied for Five Year s

State-of-the-Art Systems

± Processing Herbs

± Manuf actur ing Products

Sever al Product Categories ± Tablets, Capsules, Gr anules,

Extr acts, Syrups, Tinctures



ProductsProducts

15 Pharmaceuticals Currently Sold

Including 5 Recently Introduced Products

± Prescr iption (Rx)

± Over -the-Counter (OTC)

± Herbal-based

± All-Natur al

Products Exemplify Quality,

Purity and Effectiveness

± National Protected Status issued for

one of Bohai¶s top selling products

± National Patent Approved on productwith second highest sales volume

Rights to Produce 14 Additional Medicines



³Protected´ Medicines ³Protected´ Medicines

What is ³Protected´ Status?

± Exclusive or Near -Exclusive Manuf actur ing

r ights to TCM formulas

± Initial 7 Year Term with one 7 Year renewal

± Bohai¶s Tongbi Capsules and Anti-Flu Gr anulesbenef it from this Protection Status in China

What is ³Patented´ Status?

± Cover s the process as well as the formula

± Gr anted for 20 Year s

± Bohai was Recently Awar ded a Patent

for its Lung Nour ishing Cream



Top Products: Tongbi Capsules | Tongbi TabletsTop Products: Tongbi Capsules | Tongbi Tablets

FY2010 Sales: $24.3 million

Protected Status (Capsules)

Tongbi Capsules Covered by National Health Insur ance

Effective Arthritis Treatment

Capitalizes on Growing Elder ly Population



Top Products: Bohai Lung Nour ishing CreamTop Products: Bohai Lung Nour ishing Cream

FY2010 Sales: $15.8 million

Patent Application Approved, June 2010

Covered by National Health Insur ance

Treats Multiple Bronchial Conditions



Bohai Competitive AdvantagesBohai Competitive Advantages

Real Br and Presence

± Recognized quality products and strong

advertising presence

Robust Sales Networ k

Protected Key Products Covered by National Insur ance

Reduced Competition

± 1/3 of Chinese Pharma Companies for ced toconsolidate due to GMP Enfor cement in 2004



Sales and Distr ibution Sales and Distr ibution

Approx. 300 Sales Personnelin 20 Offices across China

Over 100 Distributors in

20 Provinces

Health Insur ance Reform Opens Rur al Areas

Bohai May Self-Distribute in Some Rur al Areas



Over the Counter (OTC) SalesOver the Counter (OTC) Sales

Sales Channels

± Retail Drugstores

± Pharmacy Chains

Extensive TV Advertising ± Focus on Lung Cream

± Br and Building

Sales Personnel

± Highly Tr ained in all Product Details

± Developing Strong Ties withPharmacies in Local Areas of China



Prescr iption SalesPrescr iption Sales

Sold to Hospitals

Advertising Not Permitted

(Medical Jour nal Excepted)

Promoted Via Conferences and Seminars

Only 10% of 11,000Gr ade AA Hospitals Currently

Using Bohai Medicines (1)

(1) Bohai Estimate



Str ategies for GrowthStr ategies for Growth

Develop Sales For ce and Channels in Rur al Provinces

Expand Hospital Presence in Urban Mar kets

Expand Onsite Tr aining

± Physicians

± Cover s All Bohai Products

± Both Rx and OTC

Aggressive Integr atedAdvertising and Mar keting Efforts



ManagementManagement

Hongwei Qu, Chairman & CEO

In May 2007, Mr . Qu took pr incipal responsibilities for theacquisition of Bohai

Has been the dr iving for ce behind the company ever since

Signif icant exper ience in the medical and pharmaceutical sector sin China

Founder of Yantai Hongwei Medical Tr ading Co., a Chinesecompany engaged in the wholesale of drugs and medical products

Gene Hsiao, Chief Financial Officer

15+ year s of exper ience in corpor ate f inance and management

Has held positions at var ious public companies, including: J&J

Snack Foods Corpor ation (NASD AQ: JJSF) and RCN Corpor ation (NASD AQ: RCNI)

Pr ior to Bohai, served as CFO for China Advanced Construction Mater ials Group Inc. (NASD AQ: CADC)



Management (continued)Management (continued)

Ning Tang, VP - Oper ations

Two+ decades management exper ience

Focus on medical, pharmaceutical and environmental sector s

Former Vice Gener al Manager of Yantai Zhongya Medical Company

Hongbin Shan, VP - Sales and Mar keting 10+ year s of exper ience in sales, marketing and management

Former Gener al Manager for the Qingdao Br anch of Shandong Green Leaf Pharmaceutical Co., Ltd.

Chunhong Jiang, Secretary and Treasurer Extensive exper ience as Financial Manager

Former Manager Yantai Garment Company and Yantai Fur aoTr ading Group



Independent Director sIndependent Director s

Chengde Wang Director and Ph.D./MD Advisor of Bei jing Shuntiande Chinese Medicine Hospital

Director and Secretar y-Gener al at Center of Tr aditional Chinese Medicine Society

Former Professor and Chief Physician at Bei jing Univer sity of Chinese Medicine

Louis A. Bevilacqua, Esq.

Partner at the law f irm of Pillsbur y Winthrop Shaw Pittman LLP Leader of Pillsbur y¶s China Capital Markets pr actice

Signif icant exper ience representing China-based middle market public companies

Adam Wasserman CEO of CFO Oncall, Inc., Flor ida-based provider of consulting/accountingservices

CFO exper ience at numerous public companies including Gold Hor seInter national, Inc. (OTCBB:GHII) & Emer ald Acquisition Corpor ation (PINK:PEAR)

Former Audit Manager at Amer ican Express and worked at Deloitte & Touche



Investment Highlights Investment Highlights

Well-Positioned to Benefit from Favor able Mar ket Conditions in China

Potential for High Revenue Growthfrom Key Protection Status

Strong Focus on Sales, Mar keting & Distribution

Proceeds of $12 Million January

2010 Private Placement: ± Increased TV Advertising

± Expansion of Sales For ce



Thank you for your time.Thank you for your time.

Darren Minton | PresidentTr ilogy Capital Partner s

212.521.4405info@tr ilogy-capital.com

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BOPH - Investor Presentation