Wiekang Biotech Investor Presentation, June 2010

WEIKANG BIO-TECHNOLGY GROUP CO., INC Investor Presentation 2010 OTCBB: WKBT www.weikangbio.com

In accordance with the 1995 Securities Litigation Reform Act of the "exemption" meaning, this statement documents contain "forward-looking statements". This statement related to understand and unknown risks, uncertainties and other factors will cause the company’s statement not match by the results, in which including sales and regional economic conditions and competitive conditions, customer relation Changes, access to capital, the difficulty of promoting new products, existing products market conditions, customers for the existing and new product awareness and other factors. Relevantly, the company believed that the results is reasonable in this forward-looking statements ， but can not guarantee that the forecast entirely correct. There is no duty that company to update the forward-looking information contained in this statements. Safe Harbor Statement

It has two subsidiaries:
Heilongjiang WeiKang
Chinese herbal-based health and
nutritional supplements and therapeutics
Brand name "Rongrun"
Founded in 2005
210 employees
Guizhou TianFang
Develops, manufactures and distributes
Chinese herbal extract products and GMP
certified western drugs
300 employees
Acquired in 2008, founded in 1998
Weikang Bio-Technology Group is a leading developer, manufacturer and marketer of
Traditional Chinese Medicine (TCM)
Western prescription and OTC pharmaceuticals
Other health and nutritional products
Company Overview

OTCBB: WKBT
Price ( as of 6 /3/2010 ) - $3.25
Shares outstanding - 27.4 M
Market capitalization - $88.9 M
TTM revenue - $51.3 million
TTM net income* - $17.2 million
TTM fully diluted EPS* - $0. 66
Insider ownership 88%
Revenue (m) Net Income (m) * Proforma – excluding non-cash expense of $912,000 41.5% y/y increase 38.1% y/y increase 270% y/y increase 115% y/y increase Financial Snapshot

Rapid revenue and net income growth
Expanding portfolio of high margin, original SFDA approved products
Strong R&D capability and investment ensure a strong pipeline - targeting launching 2-3 new products a year
GMP-certified manufacturing lines scalable up to $107 million in annual production
Acquisition strategy enhances growth opportunity
Managed by pharmaceutical industry experts
Attractive valuation
Investment Highlights

China’s pharmaceutical market is currently the 5 th largest in the world
Expected to grow to the 2 nd largest by 2020 and the largest by 2050
Medical expenditure ranks the 3 rd after food and education*
Government stimulus package expands New Rural Cooperative Medical System
Investing USD $124 billion (2009-2011) with earmarks to improve insurance coverage
Building 30,000 township hospitals and 700,000 village clinics with estimated annual increase in supply purchase of 42% from these over the next 5 years
Fragmented industry, dominated by local enterprises, creates opportunity for consolidation
Approximately 70% of the market supply is provided by small, local pharmaceutical companies**
*DOH Survey, 12/2/2004 **Economy Watch Attractive Industry Dynamics

Preventative Healthcare
Preventative medicine is the primary source of medical care for 700 million rural Chinese who cannot afford adequate healthcare*
Patients generally have to pay 50% - 60% of healthcare expense out-of-pocket
Out-of-pocket healthcare expenditures increased from 25% in 1990 to 58% in 2006**
Middle class consumers risk spending all of life savings on medical expenses
Private health insurance uncommon
Preventative care will remain important as universal coverage to be implemented in 2011 will only cover basic medical services
* factsanddetails.com, April 2010 ** China’s Ministry of Health The best doctor treats the problem before the problem becomes the disease ~ Old Chinese medical proverb

Consumers 60 years old and above
Approximately 170 million Chinese over 60 years old
Aging population regularly takes supplements to improve health condition
Population with regular / chronic health problems
70% of the population estimated to have some degree of health problems
Increasing health problems associated with modern industrial life including diseases related to stress and obesity
Consumers interested in preventative health care
Weikang’s Target Market

TianFang
Product portfolio of Western medicine and TCM
Eight products in the market
Seven SFDA approved drugs
Average gross margin 48.5%
Two SFDA approved product expected to be launched Q3 and Q4
WeiKang
Product portfolio of TCM
Seven SFDA approved nutrient medicines on the market
Seven SFDA approved product expected to be launched Q3 and Q4
Three drugs in pipeline
Average gross margin 66.1%
High Margin Portfolio % Sales by subsidiaries (2009)

TianFang’s Product Portfolio 39.76-43.55% 14.87%
Treats bacterial infections in the female reproductive system
Tinidazole Vaginal Effervescent Tablet 46.25-49.03% 23.26%
Nourishes the liver and kidney
Strengthens muscles and bones
Eucommia Ulmoides Oliv Granule Product Main Function % of 2009 Revenue Gross Margin Ferrous Fumarate Granule
Treats iron deficiency anemia
24.24% 51.28-54.39% 7.85% 63.37% Bushen Qiangshen Tablet
Nourishes the liver and kidney
Enriches yin, strengthens yang
Enhances health and brain function
Ranitidine Hydrochloride Capsules
Intended to treat duodenal ulcers, gastric ulcer, reflux esophagitis, Zollinger-Ellison syndrome, and other symptoms with gastric acid overproduction
1.66% 11.24%

WeiKang’s Product Portfolio Product Main Function % of 2009 Revenue Gross Margin Rongrun Youth Keeping Capsules
Promotes the restoration of the natural balance of female hormones during menopause
3.78% 66.55% Rongrun Energy Keeping Capsules
Reduces free radicals and oxidative stress
Intended to reduce the risk of cardiovascular disease
3.75% 66.55% Rongrun Vitamin Sugar Capsules
Reduces the onset of cardiovascular disease and fatigue for diabetics
Promotes healthy aging
4.11% 64.43% Rongrun Intestine Cleansing Capsules
Lowers blood lipid levels in order to reduce the likelihood of brain and heart vessel related diseases
Strengthens immune system
3.84% 66.55% Rongrun Artery Cleansing Capsules
Reduces cholesterol level in arteries
Promotes healthier heart and brain functions
3.95% 65.74% Rongrun Royal Jelly Extract
Immuno-regulatory
anti-cancer properties
4.63% 61.73% Rongrun Kidney Boost Tonic
Strengthen and promotes a healthy kidney
4.06% 71.93%

Strong Pipeline
Ten drugs in various stages of approval from the SFDA
Top R&D projects include
10-HDA
Has anti-cancer properties and is used in the treatment of radiation sickness and angiocardiopathy
Received SFDA approval and expected to launch in 3Q 2010
ShuangBaoGu ( a variety of mushroom grown on a salty land)
Provides several health benefits including the prevention and treatment of cardiovascular disease
Production expected to begin by end of 2010
Dofetilide
Used to treat atrial fibrillation (irregular heartbeats)
Approved for clinical test
Licorice Flavonoid Project
Develop therapeutic properties of glycyrrhize acid
Treated conditions and afflictions includes allergies, hepatitis, inflammation and swelling, including peptic ulcers hypertension, excessive potassium in the body, skin conditions, viral infections, tumor formation and cancer, specifically breast cancer, weight loss
KangYuan Antidepressant Capsules
A herbal based medicine effective in treating depression
Has passed several stages of testing and ready for clinical trials
Estimated R&D expenditure $71,000

Total sales network covers almost the whole country via two modes of distribution: exclusive distributors and wholesale drug trading firms
WeiKang’s products are sold in five provinces and Beijing through six distributors
TianFang’s products are sold nationwide through over 60 dedicated sales agents, based in 33 cities
Integrating TianFang’s distribution channels and logistics with WeiKang to achieve synergy and economies of scale
Plans to build a national logistic chain system for medicine distribution by 2012
Extensive Distribution Network

Distribution channels:
Clinical, through doctors and hospitals mostly prescription and OTC drugs
Retail pharmacies, mostly OTC drugs
Supermarkets, food and nutrition stores, mostly TCM based therapeutics
Third party sales outlets, such as rural medical centers
Conference sales and Internet orders
WaiKang plans to expand the distribution to 3 northeast provinces and to south and southwest provinces
Consolidate and share the channels for both WeiKang and TianFang products
Open bidding for new dealerships from potential distributors
Sales and Distribution

Direct mail pamphlets to seniors
Includes consultation information
Emails to younger and busy urban residents
Provides information on company products and web based ordering platform
Free delivery services in northern cities during winter season
Strong brand name advertising for TianFang OTC drugs
Partnership with wholesalers
Regular promotions
Product information forums
Incentive schemes
Plans for future acquisitions that can
expand sales channels
Sales and Marketing Strategies

WeiKang has six production lines
TianFang has three production lines
Highest quality equipment with national GMP certification
Unique technology synthesizes raw materials
Ensures quality and effectiveness of therapeutics
Helps reduce costs and enhance gross margins
Scalable production lines
Up to USD $107 million of potential annual production capacity
WeiKang & Tianfang production rate at 35% & 50% of total capacity, respectively
Production Facilities Production capabilities
Capsule
Oral liquid
Granules
Gel and soft paste
Tablets
Powder

Dr. Zhengbin Xu, M.D head of R&D
Over 40 years of clinical and research experience in TCM
Published 56 articles in international and domestic journals
Professional affiliations with
The China Medicine Research Institute
Heilongjiang Chinese Medicine Co., Ltd.
The Chinese Medical Association
R&D team composed of 16 industry experts
Received 4 national awards
Advanced R&D done in collaboration with Northeastern Forestry University and Tianjin University
Two drug testing facilities
Shuangcheng, 246 Sq Meters, GMP compliant
Guizhou TianFang, GMP certified
R&D Capabilities

Organic
Committed to R&D of new products and improving existing product portfolio to secure and expand market share
Diversify vertically into growing herbal and other raw materials to secure supply and lower cost
Increase spending for advertising and continue building brand
Acquisition
Target companies that broaden product portfolio and expands distribution network
TianFang acquisition expanded distribution network nationwide
Expand and improve product portfolio with TCM, WM, therapeutics and nutraceuticals
Growth Strategy

Yi Wang – CEO and Chairman, Founder
Weikang CEO since 2002
Physician of over 30 years with extensive clinical experience and bio-medical research experience
Served as Director of Harbin Geriatric Hospital and Harbin Chinese Medical Hospital
MBA from Beijing University
Master in Medical Science, Harbin Medical University
Yanhua Liu – CFO
CFO of WeiKang since July, 2005 and a China CPA
20 years of experience of Finance and Accounting
Bachelor in Finance, Heilongjiang Agricultural and Mechanical College

Zhengbin Xu – Chief Technology Officer
CTO of Weikang since July 2007
40 years of clinical and research experience on Traditional Chinese Medicine and Nutrition
Publish 56 research papers on international and domestic journals
Graduate of Northwest University of China.
Vice President of China Medical Association.

Bing Wei - Chief Marketing Director
Joined in Weikang in 2005
Bachelor’s degree from Harbin Commerce University
Experienced Management Team

$m Increasing Revenue

$m Strong Gross Margin

$m Increasing Net Income

USD in millions Dec. 31 2009 Mar. 31 2010 Cash and Equivalents $11.4 $18.1 11.7 19.5 Current Liabilities 10.5 10.8 Long-Term Debt 0.0 0.0 Shareholder's Equity 23.4 31.1 Current Assets Balance Sheet Highlights

Attractive Valuation Company Ticker (Exch) Price (6/8/10) Market Cap (mm) Revenues 2009 (mm) Net Income 2009 (mm) Y/Y Net Income % Y/Y revenue % PE (TTM) Weikang Bio-Technology WKBT (OTCBB) $2.79 $76.45 $47.4 $15.6 116.67% 270.31% 4.5 Biostar Pharmaceuticals BSPM (OTCBB) $3.23 $83.42 $53.3 $10.5 56.95% 57.24% 9.8 Renhuang Pharmaceutical RHGP (OTCBB) $2.00 $74.47 $43.4 $14.8 43.69% 3.67% 4.7 American Oriental Bioengineering AOB (NYSE) $2.72 $213.18 $296.1 $41.4 -13.39% 11.90% 5.1 China SkyOne Medical CSKI (NASDAQ) $11.33 $190.23 $130.1 $34.4 19.40% 41.72% 5.5 Tianyin Pharmaceutical Company TPI (AMEX) $2.67 $71.67 $42.8 $7.9 32.50% 28.18% 7.9 China Pharma CPHI (AMEX) $2.67 $115.58 $61.7 $20.3 13.46% 21.05% 5.6 Simcere Pharmaceuticals SCR (NYSE) $8.13 $447.27 $270.9 $17.5 -65.89% 6.24% 22.0 Average 12.4% 24.3% 6.4

Attractive industry dynamics supports long-term growth
Strong R&D capability ensures high margin pipelines
Competitive advantage with solid portfolio of proprietary SFDA approved therapeutics
Expanding multi-channel distribution network to increase market penetration
Established quality brand name
Fragmented industry creates opportunities for acquisitions
Investment Summary

Company:
Ren Hu
VP of Finance
Weikang Bio-Technology Group
Phone: (201) 887 0415
Email: arenhu@gmail.com
Investor Relations: Elite IR John Marco Phone: (310) 819-2948 Email: john.marco@elite-ir.com Legal Counsel: The Crone Law Group Wayne Chiang 101 Montgomery Street Suite 1950, San Francisco, CA 94104 Phone: (415) 955-8900 Email: wchiang@cronelaw.com Auditor: Ahmed Mohidin, Partner Goldman Parks Kurland Mohidin, LLP 16133 Ventura Blvd. Suite 880 Encino, CA 91436 Phone: (818) 784-9000 Email: ahmed@gpkmllp.com Contact Information

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Wiekang Biotech Investor Presentation, June 2010

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Wiekang Biotech Investor Presentation, June 2010 Presentation Transcript