I’m beginning to get tempted to put some more cash into play in the markets with this recent minor correction, but there doesn’t appear to be any major rush — the stocks that keep popping up on my watchlist now are the silver names, with Silvercorp Metals (SVM) and Silver Wheaton (SLW) at the top of my list to jump in for a bit of speculation if silver keeps falling.

But I’ve also started looking at some of the inexpensive Chinese pharmaceutical names again, too, including American Oriental Bioengineering (AOB), Tianyin Pharmaceutical (TPI) and Tongjitang Chinese Medicines (TCM), along with the drugstore chain store operator that keeps teasing me, China Nepstar Drug (NPD) … so when Nancy Zambell started teasing another China health care stock I thought the Irregulars might like to know about it.

Zambell teases this as a “$6 U.S. Drug Company to Dominate China” … sounds pretty good, right?  So who is it?

“China is spending $124 billion in the next three years to overhaul its healthcare. This vast sum will pay for new hospitals and clinics and by the end of this year, 90% of the country’s massive population will have coverage to pay for services and drugs.

“But not all drugs.

“Only 307 drugs are now deemed “essential” in China and doctors and hospitals will not get payment unless they prescribe drugs on this new “essential” drug list.

“And because of that, we’re going to double our money — with an American company.

“This company already has 78 of its drugs on this “essential” list, meaning all of them are guaranteed to be in high demand in China.”

The “essential drugs list” is a real thing, and it does include 307 drugs as of the last announcement — but it’s up for debate whether that list means more or less profits for many of the drug companies, since it’s intended both as a way to standardize available drug treatments and to cut costs. There’s some basic info on the list here from the People’s Daily, FYI.

But if we assume that having 78 drugs on this list is a big deal, what else do we learn about this company?

“I call it ‘The Poster Child for Successful M&A.’

“The whole thing started in 2004. That’s when, for the first time ever, a Chinese pharma distribution company was purchased by a foreign business. The goal: ...