TAI'AN, China, May 12 /PRNewswire-Asia/ -- China Biologic Products, Inc. (Nasdaq: CBPO) ("China Biologic," or the "Company"), a leading plasma-based biopharmaceutical company in China, today announced that its majority-owned subsidiary, Shandong Taibang Biological Products Co. Ltd. ("Shandong Taibang"), has been approved by the Shandong Province Health Department to build two new plasma stations.
"This approval is a major milestone for the Company, providing a unique opportunity to expand our plasma collection capacity to meet the significant market demand in China," said Mr. Chao Ming Zhao, China Biologic's Chief Executive Officer. "We are proud to receive the first Shandong provincial government approval for new plasma station construction since privatization of the industry in 2006. We hope to complete the two new stations by the end of this year."
The Company estimates capital expenditure during 2010 for the two sites will be between RMB 16 - 20 million (approximately, $2.4 - 2.8 million). Once the new stations are operational, China Biologic will own seven of the eight plasma collection stations in Shandong province, and 18 total plasma collection stations nationwide, with up to 660 metric tons of plasma collection capacity.
China Biologic will build its two new plasma collection stations in Yishui and Ningyang counties, which have a combined population of nearly two million. Both counties are economically underdeveloped regions that with the appropriate promotional programs, marketing efforts and nutritional supplement fees, may offer reliable sources of plasma donors over time. The construction of the new stations will also provide the Company with the opportunity to invest in the commercial vitality of these counties through job creation in the construction and healthcare sectors. Construction of the new stations will commence once final site selection is completed. Management hopes to receive approval to begin commercial plasma collection by the end of 2010.
"We expect the two new plasma stations to expand our overall collection capacity by up to 80 metric tons, or 14%, over the next few years," added Mr. Zhao. "With the additional plasma supply and the advancement of our product pipeline, we believe that we are well positioned to increase our market share in China."
About China Biologic Products, Inc.
China Biologic Products, Inc. (the "Company"), 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 the largest non-state-owned plasma-based biopharmaceutical company 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 visit http://www.chinabiologic.com/ for additional information.
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of China Biologic Products, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the ability of the Company to complete the two new stations and receive approval to begin commercial plasma collection by the end of 2010; the ability of new stations to operate at sufficient levels to increase the Company's plasma collection capacity by 80 metric tons, or 13%, over the next few years; the general ability of the Company to achieve its commercial objectives as a result of the new stations, including the increase of the Company's market share in China; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" 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 do 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 press 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 those 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.
Company Contact:
Mr. Y. Tristan Kuo
Chief Financial Officer
China Biologic Products, Inc.
Tel: +86-538-6202206
Email: IR@chinabiologic.com
Web: www.chinabiologic.com
Investor Relations Contact:
CCG Investor Relations
Ms. Lei Huang, Account Manager
Phone: +1-646-833-3417
Email: lei.huang@ccgir.com
www.ccgirasia.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
