According to media reports, Renhuang Pharmaceuticals, a Chinese developer of biopharmaceuticals and traditional Chinese medicines, has won a 1-year contract to supply Chinese military hospitals.

A company statement has said that the contract is worth an expected $600,000 this year, rising to around $1.2 million for 2011.

Renhuang will supply the Guangzhou Military District with plant-based shengmai granules, Tianma headache tablets, a number of Siberian ginseng products and an unspecified gynecological medication.

It was also reported that the Guangzhou Military District is one of the most important of China's military administrative regions. It includes military hospitals and other medical facilities in the south-central provinces of Hubei, Hunan, Guangdong and Hainan, as well as in Hong Kong and Macau.

Shaoming Li, chairman and chief executive officer of Renhuang, said that the order for the military is a breakthrough for the company.

He further added, "We will continue our efforts to secure additional supply contracts from Guangzhou Military District and other military procurement networks, which represent an attractive growth and expansion opportunity given the significant size of the Chinese military. Our ability to build a relationship with military procurement networks demonstrates the value of our innovative sales strategies and will further diversify Renhuang's sales channels."

Based in the city of Harbin in the extreme northeast province of Heilongjiang, Renhuang Pharmaceuticals specializes in Siberian ginseng medicines, which, despite the name, aren't true ginseng-based products.

The report further noted that Siberian ginseng is a distant relative of American and Asian ginsengs but a distinct plant. It is common in Helongjiang province but not in abundance elsewhere in China. It often is used to ward off depression and melancholy, to improve memory, combat fatigue and aid sleep. Siberian ginseng also is said to improve male virility. (With Inputs from Agencies)