CDC Awards 3-Year Contract to Affordable Quality Pharmaceuticals (AQP).

Terms of Agreement Call for AQP to Procure, Store, and Distribute Medicines in and for Vietnam

GARDEN GROVE, Calif. -- Twenty-seven years ago, Tracy Nguyen left Vietnam as a war refugee. Today, the former "boat person" is returning under the auspices of the Center for Disease Control and Prevention International, with a three-year plan to provide basic medicine cabinet supplies through her company, Affordable Quality Pharmaceuticals (AQP). Until now, these ordinary drugs have been unaffordable to the typical Vietnamese native.

"The average Vietnamese today makes about $50 a month," explained Nguyen. "Because it is imported, a 100-tablet bottle of aspirin coming from the U.S. costs around $3.45 and 30 azithromycin tablets are around $112. That puts even basic medical supplies out of the reach of millions. By producing the medication locally, we've cut the cost of a bottle of aspirin to 62 cents, and azithromycin to just over $9."

Under Vietnam law and regulations, only registered and licensed pharmaceutical companies may undertake physical distribution of pharmaceutical products within the country.

AQP and its Vietnam-based affiliates now hold the licenses to manufacture basic supplies such as aspirin, calamine lotion, and simethicon and can help the CDC distribute them to over 40 of the country's provinces, covering 65% of the country's retail pharmacies and almost 90% of the country's hospitals. AQP's four laboratories are located in Coa Lanh Dong Thap, Ho Chi Minh City, Danang, and Hanoi, which cover most of the country.

Recently, AQP was recognized as one of the 500 most successful woman-owned companies in the U.S.

In announcing the CDC partnership, Nguyen said, "We are gratified that we have been selected by the CDC for the procurement and distribution of many drugs important to the people of Vietnam." These basic drugs are known as Opportunist Infection and Home Based Care drugs and are part of CDC's mission in Vietnam.

"Vietnam today has a population of 84 million, and is spending $20 million a year on health care, 10 times as much as it did a decade ago," said Nguyen, "but the great challenge is providing even basic pharmaceuticals at prices which the typical Vietnamese can afford."

About the CDC

The Centers for Disease Control and Prevention is active in prevention, care, and treatment, as well as capacity and infrastructure development. The 60-year-old institution is synonymous with health around the world. The CDC works collaboratively with global organizations to promote health and protect people from disease, injury, and disability.

About AQP

Affordable Quality Pharmaceuticals, Inc. is a privately held corporation headquartered in Garden Grove, California. The company purchases drugs in large quantities directly from the drug manufacturers, reduces them to the dosage sizes typically prescribed by physicians, and repacks them in bottles and bubble packs. These are sold to independent pharmacies and pharmacy buying groups.

Vertical integration (from retail pharmacies to wholesaler to re-packer) has led to AQP's growth in the U.S. marketplace. AQP is competing in this market by developing pharmaceuticals very cost effectively. In order to do this, the company has cultivated strategic alliances with pharmaceutical manufacturers in Vietnam. Low labor costs in Vietnam, coupled with U.S. technology, result in a superior competitive advantage. By leveraging its in-depth experience in the U.S. pharmaceutical and distribution network, AQP is in a unique position to be the pioneer in the manufacturing of prescription drugs in Vietnam, as well as having the price-point advantage for the penetration of the U.S. market.