China Biologic Products to Receive Government Benefits to Continue R&D Innovation
Apr 27, 2010
TAI'AN, China, April 27 /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 its majority-owned subsidiary, Shandong Taibang Biological Products Co. Ltd. ("Shandong Taibang"), has been earmarked by the Shandong provincial government, as one of twelve model Shandong-based biopharmaceutical companies, eligible to receive financial subsidies and tax concessions related to new drug research and development in connection with the provincial government's recently announced program to drive growth in the region's biopharmaceutical industry.
The Shandong provincial government recently announced the adoption of policies to award financial subsidies and tax concessions to certain companies in several high-tech industries, including in the biopharmaceutical, modern Chinese medicine and medical equipment industries. The provincial government expects that the region's biopharmaceutical industry will generate approximately RMB 20 billion ($2.9 billion) in revenues by 2012 and will introduce 10 to 15 new drugs and identified Shandong Taibang as a key leader in Shandong's growing biopharmaceutical industry, largely due to its established track record in the research and development of new drugs.
As currently formulated, Shandong Taibang is eligible to apply for and receive the provincial government subsidies and tax concessions for its new drug development as well as for the development of certain new technologies, products and research techniques, on a case by case basis, however, provincial tax authorities are charged with determining the specific implementation procedures of the announced policies and so they are subject to change. If the polices are implemented as currently formulated and the Shandong Taibang is approved for such funding and tax concessions, the Company expects a positive impact on its R&D costs.
"We are honored to be recognized by the Shandong government as a leading contributor in the province's biopharmaceutical industry," commented Mr. Chao Ming Zhao, China Biologic's Chief Executive Officer. "We are encouraged by the government's planned financial support of our industry and we hope to access and utilize such support through internal R&D and strategic partnerships to advance our technologies and capabilities, and strengthen the breadth and depth of our portfolio of plasma-based biopharmaceutical products. With our pipeline of six products, we expect new product launches in the coming years that will contribute to the provincial government's goal for new biological drug introductions."
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.
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 impact of the new Shandong provincial government initiatives on the Company's business and operations; the ability of the Company to access related funding and tax concessions on a case by case basis, especially, after implementation of the policies by provincial tax authorities; the success of the Company's R&D efforts to develop and commercialize new products, and the ability of the Company to successfully launch its pipeline products in the coming years; 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: http://www.chinabiologic.com/ Investor Relations Contact: Ms. Lei Huang, Account Manager CCG Investor Relations Tel: +1-646-833-3417 Email: email@example.com Web: http://www.ccgirasia.com/ Mr. Crocker Coulson, President Tel: +1-646-213-1915 Email: firstname.lastname@example.org
SOURCE: China Biologic Products, Inc.
CONTACT: Mr. Y. Tristan Kuo, Chief Financial Officer, China Biologic
Products, Inc. at +86-538-6202206 or IR@chinabiologic.com; Investor Relations
Contact: Ms. Lei Huang, Account Manager, CCG Investor Relations at
+1-646-833-3417 or email@example.com; Mr. Crocker Coulson, President at +1-
646-213-1915 or firstname.lastname@example.org
Web site: http://www.chinabiologic.com/