Sihuan Pharmaceutical Collaborates with NeuroVive to Develop Two Innovative Cardio-cerebral Vascular Products in China

 Sihuan Pharmaceutical Collaborates with NeuroVive to Develop Two Innovative
                  Cardio-cerebral Vascular Products in China

Collaborate with Renowned International Pharmaceutical Company

Set to Further Optimize Product Portfolio

PR Newswire

HONG KONG, Nov. 20, 2012

HONG KONG, Nov. 20, 2012 /PRNewswire/ -- Sihuan Pharmaceutical Holdings Group
Ltd. (HKEx: 0460) ("Sihuan Pharmaceutical" or the "Company"), a leading
pharmaceutical company with the largest cardio-cerebral vascular ("CCV") drug
franchise in China's prescription market, is pleased to announce that it has
entered into a collaboration agreement with NeuroVive Pharmaceutical AB
("NeuroVive"), a leading international mitochondrial pharmaceutical
development company, to develop two innovative products, CicloMulsion® and
NeuroSTAT®, which are used for the treatment of heart reperfusion injuries and
traumatic brain injuries respectively.

Pursuant to the collaboration agreement, NeuroVive will grant Sihuan
Pharmaceutical an exclusive license to develop, market and sell CicloMulsion®
and NeuroSTAT® in China, as well as the intellectual property rights and
knowhow in connection with the products to pass clinical trials. Both
CicloMulsion® and NeuroSTAT® reach international standards, and they are
currently undergoing the third and second phases of clinical trials
respectively. Both medical products contain cyclosporine A, which is mainly
used for the treatment of heart reperfusion injuries and traumatic brain
injuries. By protecting the mitochondria of cells, CicloMulsion® and
NeuroSTAT® ensure that energy production is preserved and the normal
regenerative mechanisms of damaged cells can act to repair and maintain the
cells. Therefore, the two products act to prevent the destruction of the
mitochondria in damaged cells and the cascade of intracellular biochemical
events that lead to secondary tissue damage following a traumatic injury. As
there are currently no approved pharmaceutical treatment options for these
types of injuries, the two products have enormous market potential. The
current market size of exclusive drug products with similar efficacy is over
RMB1 billion. According to MENET, the CCV market amounts to approximately
RMB100 billion with an annual compound growth rate of more than 20% and is the
largest segment in China's pharmaceutical market.

Sihuan Pharmaceutical shall make upfront and milestone payments totalling
RMB35 million and RMB12 million to NeuroVive in respect of CicloMulsion® and
NeuroSTAT® respectively. In addition, the Company shall pay a royalty
representing 10% of the net revenue from the two products for a period of 10
years from the time they are launched.

Dr. Che Fengsheng, Chairman and CEO of Sihuan Pharmaceutical, said, "The
important collaborative agreement with a renowned international pharmaceutical
development company marks a breakthrough for our business development. The
collaboration will bring together Sihuan Pharmaceutical's competitive
advantages in product development, marketing promotion and distribution
network and NeuroVive's advanced drug development technology. This will enrich
our product portfolio, raise the level of our product resources and widen our
revenue stream. We believe that CicloMulsion® and NeuroSTAT® will become new
drivers of our sales, sustain our growth in the long run, and consolidate
Sihuan Pharmaceutical's leadership in the CCV drug market."

Mr. Mikael Bronnegard, CEO of NeuroVive, said, "Our agreement with Sihuan is a
transformational event for NeuroVive and provides strong validation of the
huge potential of mitochondrial medicine and specifically the work we have
done to develop the cyclophilin D inhibitors CicloMulsion® and NeuroSTAT®.
Sihuan is one of the leading pharmaceutical companies in China and through
this agreement will add significant resources, product development and
marketing expertise that will greatly accelerate the development and
commercialization of our products in China. I look forward to a long and
productive partnership with Sihuan that I am confident will lead to the launch
of NeuroVive's products for the treatment of acute cardiovascular and
neurological conditions in the Chinese market."

Listed on the AktieTorget of the Swedish stock exchange, NeuroVive is a
leading pharmaceutical development company that is focused on the treatment of
acute neurological conditions. NeuroVive is dedicated to developing a
portfolio of products to treat acute cardiovascular (including traumatic brain
injuries, stroke, spinal cord injuries and heart attacks) and neurological
conditions through mitochondrial protection.

Sihuan Pharmaceutical currently offers a portfolio of 37 types of CCV
products. According to IMS Health Incorporated, the market share of the
Company's CCV drugs for hospital purchase was 7.5% (new statistics from IMS
include traditional Chinese medicine prescription drugs) as at the end of June
2012, 2.7% ahead of the second-largest player in the Chinese CCV prescription
drug market. As at 2011 and the first half of 2012, the total revenue of
Sihuan's CCV products accounted for a respective 90.1% and 91.9% of total
revenue of the Company.

About Sihuan Pharmaceutical Holdings Group Ltd.

Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading
pharmaceutical company and the largest cardio-cerebral vascular drug franchise
in China's prescription market. The success of the Company can be attributed
to its differentiated and proven sales and marketing model, extensive
nationwide distribution network, diverse portfolio of market-leading drugs and
strong research and development capabilities. The Company's current products
encompass the top five medical therapeutic areas in China: cardio-cerebral
vascular system, central nervous system, metabolism, oncology and
anti-infectives. Its major products-- such as Kelinao, Anjieli, Chuanqing,
Qu'Ao, GM1 and Oudimei-- are widely used in the treatment of various
cardio-cerebral vascular diseases.

About NeuroVive Pharmaceutical AB

Listed on the AktieTorget of the Swedish stock exchange, NeuroVive
Pharmaceutical is a leader in neurological medicine, health and wellness in
the field of drug development for acute neurological conditions (traumatic
brain injury, stroke, spinal cord injury, and heart attacks). NeuroVive's
products are based on cyclosporin-A and cyclosporine derivatives acting as
cyclophilin inhibitors for disease prevention and control through
mitochondrial protection.

For further enquiries, please contact Hill+Knowlton Strategies Asia:

Angela Kung
Tel: (852) 2894 6374 / 6017 7030
Email: angela.kung@hkstrategies.com 

Crystal Yip
Tel: (852) 2894 6211 / 9720 6445
Email: crystal.yip@hkstrategies.com

SOURCE Sihuan Pharmaceutical Holdings Group Ltd.