TAI'AN, China, Aug. 1, 2011 /PRNewswire-Asia-FirstCall/ -- China
Biologic Products, Inc. (NASDAQ: CBPO) ("China Biologic," or the
"Company"), a leading plasma-based biopharmaceutical company in
China, today announced that 2 of
its plasma collection stations, in Pu Ding and Huang Ping counties in the Guizhou Province, passed inspection and have
been relicensed today for operation for 2 years, and will continue
to operate.
As previously announced, the Guizhou Health Department on
July 15, 2011 issued the revised
"Plan for Guizhou Provincial Blood Collection Institutional Setting
(2011-2014)" (the "Revised Plan"). In the relevant part, the
Revised Plan states that "in accordance with the demographic
distribution, economic development condition, disease prevalence,
and actual situation of plasma supply for the manufacturing of
blood-based products, plasma collection stations will be set up in
4 counties, including Kai Yang, Du
Shang, Pu Ding, Huang Ping,
etc."
China Biologic's 54% indirectly owned subsidiary, Guizhou
Taibang Biological Technologies Co., Ltd. ("Guizhou Taibang"), had
6 active plasma collection stations operating in the Guizhou Province. The expiration date of the
licenses for the 6 plasma collection stations was July 31, 2011. In March
2011, all 6 stations submitted their requests to their
respective county health department in which they are located for
the inspections required to renew their licenses. All 6 stations
passed the preliminary inspections by the county and subsequently
by the municipal health departments in March and April,
respectively. In late April, Guizhou Taibang was notified by the
relevant health departments that these stations' license renewal
requests had been submitted to the Guizhou Provincial Health
Department for review.
Among these 6 active plasma collection stations, these 2
stations located in the counties included in the Revised Plan (Pu
Ding and Huang Ping) were inspected
by the Guizhou Provincial Health Department on July 22, 2011 and were relicensed on August 1, 2011.
The licenses for these 4 other plasma collection stations in
Dan Zhai, Wei Ning, San Sui, and Na Yong counties have expired on July 31, 2011 and have not been inspected and
relicensed. The Company expects these 4 stations will cease
operations until at least August 1,
2013. In addition, Guizhou Taibang has 1 inactive plasma
collection station that is not expected to be licensed as planned,
because it is in Zhengyuan County, a location not included in the
Revised Plan.
The Company is currently evaluating the effect of the Revised
Plan and the closing of the 4 active plasma collection stations
including, among other items, the potential reduction in
China Biologic's previously issued
financial guidance for the year 2011, potential reduction in its
business operations and financial performance in current and future
periods, potential assets impairments associated with the closing
of these plasma collection stations and the 1 inactive station, and
other possible effects.
In a bid to mitigate the impacts from the closing of the 4
plasma collection stations in Guizhou
Province, the Company is exploring alternative solutions and
opportunities, but no assurance can be given that it will be
successful in doing so. Among all of the Company's efforts, the
Company is (1) minimizing the writing off of already collected
plasma from these 4 stations by performing all tests needed as
required by the 90-day quarantine rules, (2) reallocating resources
from the closed stations to maximize their utilization within the
Company, and (3) contemplating new regions to apply for new plasma
stations.
About China Biologic Products, Inc.
China Biologic Products, Inc., through its indirect
majority-owned subsidiaries, Shandong Taibang Biological Products
Co., Ltd. and Guiyang Dalin Biologic Technologies Co., Ltd., and
its equity investment in Xi'an Huitian Blood Products Co., Ltd., is
currently one of the leading plasma-based biopharmaceutical
companies in China.
The Company is a fully integrated biologic products company with
plasma collection, production and manufacturing, research and
development, and commercial operations. The Company's plasma-based
biopharmaceutical products are irreplaceable during medical
emergencies and are used for the prevention and treatment of
various diseases. The Company sells its products to hospitals and
other healthcare facilities in China. Please see the Company's website at
www.chinabiologic.com for additional information.
Safe Harbor Statement
This news release includes forward-looking statements including,
among others, those concerning the implementation of the Revised
Plan, the closing of 4 plasma collection stations in Guizhou, and the expected effect on our
financial performance, business operations, and our ability to seek
alternative solutions and opportunities, as well as all
assumptions, expectations, predictions, intentions, or beliefs
about future events. Forward-looking statements can in some cases
be identified by the use of forward-looking terminology such as
"anticipates," "believes," "expects," "should," "will," or similar
expressions. Factors that could cause actual results to differ
materially from our forward-looking statements include our
potential inability to find alternative sources of plasma,
potential inability to increase production at permitted sites,
potential inability to mitigate the financial consequences through
cost cutting or other efficiencies, and potential additional
regulatory restrictions on our operations. For a description of
additional risks and uncertainties that may cause actual results to
differ from the forward-looking statements contained in this news
release, please see our most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission ("SEC"), and our
subsequent SEC filings. Copies of filings made with the SEC are
available through the Company's website at www.chinabiologic.com
and through SEC's website at www.sec.gov. Future business decisions
are subject to change and the Company does not undertake to update
the forward-looking statements contained in this news release
except as required by law.
Company contact
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Mr. Y. Tristan Kuo
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Chief Financial
Officer
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China Biologic Products,
Inc.
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Tel: +86 53 8620 2206
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Email: IR@chinabiologic.com
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www.chinabiologic.com
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SOURCE China Biologic Products, Inc.