BEIJING, April 16, 2015 /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 subsidiary,
Guizhou Taibang Biological Products Co., Ltd. ("Guizhou Taibang"),
has received a one-time special approval from the China Food and
Drug Administration (the "CFDA") to purchase up to approximately
143 tonnes of source plasma and plasma pastes from Xinjiang Deyuan
Bioengineering Co., Ltd. ("Xinjiang Deyuan") for a total
consideration of up to approximately RMB139
million (approximately US$22.4
million) pursuant to certain agreements entered into between
Guizhou Taibang and Xinjiang Deyuan. Source plasma and plasma
pastes are raw materials for producing human albumin and
intravenous immunoglobulin ("IVIG") products.
These raw materials are expected to be delivered during the
second quarter of 2015, and the final purchase volume is contingent
upon the Company's quality inspection of these raw materials. The
Company expects that the final products made from such purchased
raw materials will be released to market in 2015 and 2016.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"With the CFDA's special approval, this plasma purchase presents a
unique growth opportunity for China Biologic in the near term. The
additional supply of source plasma and plasma pastes, which
represents over 20% of our current annual collection volume, will
enable us to significantly improve the production utilization rate
of our Guizhou production facility
and better meet the growing demand for plasma products, including
the highly sought-after IVIG, in tier-one cities in China. We anticipate that this purchase will
have a meaningful positive impact on our top and bottom line growth
over the next two years."
"While the cost for these materials is moderately higher than
the cost of materials from our collection stations, this
transaction provides immediate access to a substantial volume of
raw materials and complements our plasma collection growth
strategy. We will continue to focus on expanding our collection
capacity to ensure sustainable supply growth to meet the increasing
market demand for plasma-based products in China," concluded Mr. Gao.
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 "will," "believes," "are
expected to," "expects," "anticipate," or similar expressions, and
involve known and unknown risks and uncertainties. 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 the actual volume of
source plasma and plasma pastes purchased from Xinjiang Deyuan, the
timely delivery of these raw materials and the quality inspection
results, 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, 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
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SOURCE China Biologic Products, Inc.