BEIJING, Nov. 3, 2014 /PRNewswire/ -- China Biologic
Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a
leading fully integrated plasma-based biopharmaceutical company in
China, today announced that its
majority-owned subsidiary Shandong Taibang Biological Products Co.
Ltd. ("Shandong Taibang") received on October 31, 2014 the approval from the Hebei
Provincial Health and Family Planning Commission to build two new
plasma collection stations in Hebei
Province.
The new plasma collection stations will be located in Xinglong
County of Chengde City and Daming County of Handan City. These two counties have a
combined population of approximately one million. The Company
intends to acquire the requisite land use rights and obtain the
construction permits as soon as it completes the site selection
process, and will try to complete construction, staff recruitment
and government inspection and certification process within
approximately 12 months thereafter. The aggregate capital
expenditures for these two new collection stations are expected to
be in the range of RMB40 million to RMB50
million, or approximately $6.5
million to $8.1 million based on the current exchange rate.
Each new collection station may commence operations only after it
passes a government inspection and certification process and
obtains a collection license. The Company expects these two new
stations to reach their designed annual collection capacities in
approximately three years after obtaining collection licenses, by
which time these two new stations are expected to increase the
Company's total collection capacity by approximately 10-15%.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are very pleased to announce the approval to build two new
collection stations in Hebei
Province, where the Company has significant market presence.
Hebei, with a combined population
of approximately 71 million, is an underdeveloped province for
plasma collection as there are currently three stations only. The
approval obtained by China Biologic is the first issued by the
Hebei provincial government since
plasma collection was privatized in China in 2006."
"The region is geographically advantageous for us because it is
close to Shandong and offers
convenient and economic transportation for raw materials to our
Shandong Taibang manufacturing facility. Additionally, Hebei has a relatively low occurrence of
infectious disease and therefore offers a good pool of eligible
plasma donors. The establishment of these two new collection
stations in Hebei will represent a
significant step for carrying out China Biologic's strategic
business development plan. With the continuing expansion of our
plasma collection capacity and advancement of our product pipeline,
we believe we are well positioned to meet the increasing market
demands for plasma protein therapeutics in China in the coming years," Mr. Gao
concluded.
About China Biologic Products, Inc.
China Biologic is a leading 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 dosages of plasma-based products
through its indirect majority-owned subsidiaries, Shandong Taibang
Biological Products Co., Ltd. and 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 and inoculation centers, as well as
distributors, in China. For
additional information, please see the Company's website,
www.chinabiologic.com.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products,
Inc. and its subsidiaries. All statements, other than statements of
historical fact included herein, are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "intend," "believe," "expect,"
"are expected to," "will," or similar expressions, and involve
known and unknown risks and uncertainties. Among other things, the
Company's plan regarding the construction of the collection
stations, the time required for the collection stations to reach
their designed capacities and quotations from management in this
news release contain forward-looking statements. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable, they involve
assumptions, risks, and uncertainties, and these expectations may
prove to be incorrect.
Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including, without limitation
potential delay or failure in acquiring land use rights, obtaining
construction permits, completing the design or construction, or
passing the government inspection and certification process for the
new collection stations in Hebei
province, potential inability to achieve the designed collection
capacities at the new collection stations, potential inability to
achieve the expected operating and financial performance, potential
inability to find alternative sources of plasma, potential
inability to increase production at permitted sites, potential
inability to mitigate the financial consequences of a temporarily
reduced raw plasma supply through cost cutting or other
efficiencies, and potential additional regulatory restrictions on
its operations and those additional risks and uncertainties
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov). All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements.
Contact:
China Biologic Products, 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
SOURCE China Biologic Products, Inc.