Today one of the main issues facing the pharma industry is a shift towards centralized global procurement which in turn drives the globalization of contract manufacturing. The decision to outsource does not depend on the type of drugs being developed, the pipeline or the size of the company but rather on the manufacturers' need for lower prices. However, currently this process is slow and growth is limited to 10-15% (A. T. Kearney). The need to accelerate the process is the reason why TPN's vast know-how adds measurable value and provides viable solutions to its clients. The company's intimate knowledge of API and outsourcing providers results in the ability to match potential partners based not only on pricing requirements but also on a proprietary set of values and characteristics which make for stronger and long lasting relationships.

TPN offers Chinese, Indian and other foreign manufacturers a direct entrée into the U.S. market place, sophisticated marketing techniques, access to R&D and innovation management, enhanced approaches to CRM (Customer Relationship Management), links to the global market place. TPN will assist in establishing relationships between interested parties and will participate in the negotiations insuring the most advantageous terms and conditions for its clients. Not being a potential competitor, the Company will always work for the best possible outcome.

Many foreign generic drug and API manufacturers are aware that while they have created the resources needed to succeed and have purchased state-of-the-art technology; they must also create a basis for business independence and international trade based upon a thorough appreciation of local environments. TPN's intimate knowledge of the U.S. generic pharma landscape bridges this gap and fully prepares its clients to successfully tackle the complexities of the world's largest market.

TPN assists and advises these manufacturers on how to formulate the best value proposition for the U.S. market place; how to identify the most fitting candidates and confirm their suitability; how to communicate the value of the relationship and shape the partnership and how to bring this complex process to the desired outcome on time and on budget.

The company is directly involved in the sale and distribution of drugs to all major classes of trade including warehousing and non warehousing drug chains, independent pharmacies, mail order and long term care companies, buying groups and wholesalers and distributors specializing in both branded and generic pharmaceuticals. This capability gives TPN's clients direct access to the U.S. marketplace, which results in a significant improvement on their top and bottom line performance.

Through its Chinese subsidiary, TPN eliminates current difficulties and concerns regarding outsourcing in China. TPN provides industrial analysis and identification of cost effective and reliable suppliers of intermediates, API and finished products. For example, TPN's AlliancePharm subsidiary has developed one of the most comprehensive API data base for Chinese manufacturers.

Western pharma has a clear sense that for projects in launch mode, the preference is to have them closer to home. However, once a project has stabilized, depending on the technologies used, materials might be sourced from countries where costs are low. As a product moves into later stages of its life cycle, drug firms start to expect substantial cost reductions, something European API providers may not be able to offer. In order to achieve low-risk and rational integration, TPN continues to build strategic partnerships and joint ventures with API and finished product manufacturers.

As requested by its customers, TPN will support all drug development programs, technology transfers, CRO, preparation of regulatory submissions and acting as global regulatory liaison, translations and other activities.

Today, Chinese firms are followers rather than innovators and need to enhance their discovery activities. Through the Company's existing and developing partnerships, interested entities will have access to innovative technologies, new drug platforms and orphan drugs, enabling them to become more competitive.

Companies are taking time to qualify their suppliers and to establish relationships, before deciding to transfer their work. TPN has an extensive data base as well as strong partnerships with both manufacturers and qualified and experienced outsourcing candidates. The Company's in-depth knowledge of the generic market place enables it to optimize the matching of sources and customers and to participate directly in managing the process.

Historically when considering an outsourcing option, manufacturers have expressed concern regarding quality issues. TPN's knowledge and expertise in quality and regulatory systems has positioned the Company to deliver unique solutions. TPN's services include site audits, strategic regulatory consulting, validation, preparation of regulatory submissions and acting as global regulatory liaison. The Company's in-depth analysis of a particular situation defines the implications of the regulatory requirements on a client's business, and will result in identifying and proposing and implementing a viable customer specific solution.

From a manufacturing supply perspective, every company is trying to simplify its supply chain. The era of having countless suppliers is coming to an end. By providing an interface between the manufacturer and its vendors, TPN is ideally positioned to simplify and rationalize this process. Thus, instead of negotiating with many contractors, TPN offers reasonable, highly personalized "turnkey" purchasing options.

TPN's strength includes excellence in project management expertise. Its local offices provide incomparable insight and a remarkable level of support which translate into quantifiable time savings and streamlined operations.

One of the key challenges foreign generic companies face are attempts made by brand pharmaceutical manufacturers to block or delay the market entry of generic equivalents. Having a company like TPN, who understands the legal and regulatory requirements in the U.S. and how to operate in these critical areas is a great and quantifiable advantage.

Consolidation has a major impact on generic pharma and has altered the equilibriums within this industry. Record M&A activity has resulted in companies that have a breadth of product and geographical reach that has been seldom witnessed before. This M&A activity is driven by the need for adequate size and scale to more effectively compete on a global basis. Some acquisitions also have been driven by the need to acquire complementary products, technologies and drug delivery systems. In order to compete, companies need flexibility, extensive product offerings, pricing and an intimate knowledge of the markets served. TPN has proven that it has ample qualifications and resources to assist and support its clients in their individual quests.