BEIJING, Oct. 12, 2017 /PRNewswire/ -- China Biologic
Products Holdings, Inc. (NASDAQ: CBPO) ("CBPO" or the "Company"), a
leading fully integrated plasma-based biopharmaceutical company in
China, today announced that it has
agreed to acquire 80% equity interest in Tianxinfu (Beijing) Medical Appliance Co., Ltd.
("TianXinFu") from PW Medtech Group Limited ("PWM"), a company
listed on The Stock Exchange of Hong Kong Limited (Stock Code:
1358).
TianXinFu, a medical device company primarily engaging in the
manufacturing and sale of regenerative medical biomaterial
products, is currently owned as to 80% by PWM and 20% by a third
party. In exchange for its acquisition of 80% equity interest in
TianXinFu from PWM, CBPO will issue 5,521,000 ordinary shares to
PWM. Upon the closing of the proposed transaction, PWM is expected
to hold approximately 16.66% of the outstanding share capital of
CBPO taking into effect the new issuance.
CBPO's board of directors has determined to exempt the proposed
transaction from causing PWM to be deemed an "acquiring person"
under CBPO's preferred shares rights agreement dated July 31, 2017. In addition, CBPO has decided to
follow its home country practice and elected to be exempted from
the shareholder approval requirement under the applicable rules of
the NASDAQ Stock Market for the proposed transaction.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are excited to welcome TianXinFu to the China Biologic family.
We believe that the synergies created by this transaction will
further expand our top and bottom line financial performance.
TianXinFu is the largest manufacturer of its core product,
artificial dura mater, and together with other surgical consumable
products it serves over 1,600 hospitals with a strong professional
marketing and sales force in China. As well-established brands
in our respective markets, we will be able to strengthen our core
plasma therapeutics businesses by leveraging each other's existing
market presence to cross-sell and offer bundle pricing
opportunities; expand our customer bases by growing into each
other's sales channels, hospitals, and departments. This
acquisition will also enable us to unlock the market potential of
our new or upcoming high margin coagulation factor products which
have greater synergies with some of TianXinFu's main products. At
the same time, our combined scale means reduced costs, optimized
spending, broadened market exposure, and improved bargaining power
with distributors, customers, and suppliers."
"We look forward to working with the team at TianXinFu to
strengthen our competitive position in the consolidating plasma
industry in China and to
participate in the rapid growth of the regenerative medical
bio-material industry in China.
PWM, as a new shareholder, shares our belief and expects to
participate in this value creation process. We remain committed to
positioning China Biologic for long-term, sustainable growth and
creating optimal value for our shareholders," Mr. Gao
concluded.
The parties currently expect to complete the proposed
transaction in 2017, subject to the satisfaction of customary
closing conditions, including, among others, the approval of the
shareholders of PWM.
About Tianxinfu (Beijing)
Medical Appliance Co., Ltd.
Founded in 2002, Tianxinfu (Beijing) Medical Appliance Co., Ltd.is a
medical device company primarily engaging in manufacturing and sale
of regenerative medical biomaterial products, including artificial
dura mater and spinal dura mater products. Its pipeline products mainly include
absorbable oral repair
membrane for oral and maxillofacial surgery and the second
generation of artificial dura mater, etc. TianXinFu has an
extensive nationwide distribution network with distributors
covering the major provinces in China.
About China Biologic Products Holdings, Inc.
China Biologic Products Holdings, Inc. (NASDAQ: CBPO) is a
leading fully integrated plasma-based biopharmaceutical company in
China. The Company's products are
used as critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 different dosage forms of plasma products through its majority
owned subsidiary, Shandong Taibang Biological Products Co., Ltd.,
and its wholly owned subsidiary, Guizhou Taibang Biological
Products Co., Ltd. The Company also has an equity investment in
Xi'an Huitian Blood Products Co., Ltd. The Company sells its
products to hospitals, distributors and other healthcare facilities
in China. For additional
information, please see the Company's website
www.chinabiologic.com.
Safe Harbor Statement
This release contains certain "forward-looking statements"
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact in this announcement are
forward-looking statements. These statements are forward-looking in
nature and subject to risks and uncertainties that may cause actual
results to differ materially. All forward-looking statements
included in this release are based upon information available to
CBPO as of the date of this release, which may change, and CBPO
undertakes no obligation to update or revise any forward-looking
statements, except as may be required under applicable securities
law.
Contact:
China Biologic Products Holdings, Inc.
Mr. Ming Yin
Senior Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com
ICR Inc.
Mr. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
E-mail: bill.zima@icrinc.com
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SOURCE China Biologic Products Holdings, Inc.