--Provides Update on New Shandong Facility and Full Year 2017
Financial Forecast --
BEIJING, Jan. 8, 2018 /PRNewswire/ -- China Biologic
Products Holdings, Inc. (NASDAQ: CBPO, "China Biologic" or the
"Company"), a leading fully integrated plasma-based
biopharmaceutical company in China, today announced that its new
Shandong facility has completed
the on-site GMP inspection and the inspection on the sample
products by the China Food and Drug Administration ("CFDA"). The
Company now awaits the CFDA's approval of the production license
transfer for each product from the old facility to the new facility
and expects to receive the new facility's final production
certificate in late February, when full operations at the new
facility will also begin.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to have completed the construction and inspection
of our new Shandong facility and
to have managed the process in a timely fashion. We are now
awaiting certain administrative procedures from the government
before obtaining the final certificate. Once operational, this new
facility will help ease capacity constraints."
Additionally, the Company announced that its full year 2017
total sales is expected to grow approximately 10.5% in RMB terms
over 2016 results, compared to its previous revised guidance of
9%-10%, and announced that it is updating its full year non-GAAP
adjusted net income growth rate to be in the low teens on a
percentage basis compared to its previous guidance of non-GAAP
adjusted net income growth of 18% to 20%.
"The more aggressive-than-expected implementation of certain
government healthcare reform policies has negatively impacted our
profit growth in the fourth quarter of 2017. More specifically, in
order to meet the limits placed by the government on the ratio of
drug sales to total hospital revenue in an effort to lower overall
regional medical insurance spending, certain hospitals and
distributor customers limited purchases on certain high-unit-price
products, such as IVIG. These policies resulted in less revenue
generated from high-margin plasma products and increased investment
in marketing and promotion activities than we had expected in early
November 2017," concluded Mr.
Gao.
These preliminary 2017 results are unaudited and remain subject
to the finalization of the Company's year-end closing, reporting
and audit process. The Company plans to report its fourth quarter
and year end 2017 financial results and to provide its 2018
financial forecast in early March 2018.
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 indirect
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.
Non-GAAP Disclosure
This news release contains a non-GAAP financial measure,
adjusted net income, that excludes from net income non-cash
compensation expenses related to options and restricted shares
granted to employees and directors under the Company's 2008 Equity
Incentive Plan. The Company's management believes that this
non-GAAP measure provides investors with a better understanding of
the Company's performance. This non-GAAP information is not meant
to be considered in isolation or as a substitute for GAAP
financials. The non-GAAP financial information that the Company
provides also may differ from the non-GAAP information provided by
other companies. A reconciliation of GAAP net income and non-GAAP
adjusted net income for the full year 2017 will be provided when
the Company announces its complete financial results for the fourth
quarter and full year ended December 31,
2017.
In addition, as the Company evaluates certain key items of its
financial results on a local currency basis (i.e., in RMB) in
addition to the reporting currency (i.e., in USD), this news
release contains local currency information that eliminates the
impact of fluctuations in foreign currency exchange rates. The
Company believes that, given its operations primarily based in
China, providing local currency
information on such key items enhances the understanding of its
financial results and evaluation of performance in comparison to
prior periods. Changes in local currency percentages are calculated
by comparing financial results denominated in RMB from period to
period.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products
Holdings, 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 plans regarding the operations at
the new Shandong facility, the
forecast of total sales growth and non-GAAP adjusted net income
growth, and the management's quotations 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 to obtain the production certificate at
the new facility, potential delay or failure to complete the
clinical trials for new products, potential delay or failure to
complete construction of new collection facilities, potential
inability to pass government inspection and certification process
for new collection facilities, potential inability to achieve the
designed collection capacities at new collection facilities,
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 potential change in market demand for plasma
products, 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 Holdings, Inc.
Mr. Ming Yin
Senior Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com
ICR Inc.
Mr. Bill Zima
Phone: +1-646-405-5191
E-mail: bill.zima@icrinc.com
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SOURCE China Biologic Products Holdings, Inc.