China Biologic's Guizhou Taibang Subsidiary Announces Update Regarding GMP
BEIJING, Jan. 2, 2013
BEIJING, Jan. 2, 2013 /PRNewswire-FirstCall/ --China Biologic Products, Inc.
(NASDAQ: CBPO, "China Biologic" or the "Company"), a leading fully integrated
plasma-based biopharmaceutical company in China, today announced that the
construction of a new production facility at its Guizhou Taibang subsidiary
could be delayed due to slower-than-expected government approval of land use
rights. The Company is working closely with local authorities to secure
approval as soon as possible and will inform investors once it makes material
progress in these regards along with an updated schedule for when it expects
to complete the new Guizhou facility.
The Company had expected to commence preparation work for this project in late
2012 and complete the project by mid 2014. The Company expects to halt
production at its existing production facility in Guizhou by the end of 2013
as a more stringent Good Manufacturing Practice ("GMP") standard enacted by
China's State Food and Drug Administration (the "SFDA") goes into effect.
China Biologic is evaluating the possible impacts of a production suspension
in Guizhou by the end of 2013 and the delay of the construction of the new
facility, including, among others, the possible reduction in sales revenue and
possible additional investment in GMP upgrading. To mitigate possible negative
impacts and ensure supply continuity, the Company is also evaluating the
feasibility of reallocating certain production resources, options to build up
inventory, and the feasibility of adjusting shipping plans for 2013.
About China Biologic Products, Inc.
China Biologic Products, 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
plasma-based products through its indirect majority-owned subsidiaries,
Shandong Taibang Biological Products Co., Ltd. and Guiyang Dalin Biologic
Technologies 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 other healthcare facilities 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 "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 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 its
potential inability to achieve the expected operating and financial
performance in 2012, 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
China Biologic Products, Inc.
Mr. Ming Yin
Mr. Rob Koepp
Phone: +86-10-6583-7516 or +1-646-405-5191
SOURCE China Biologic Products, Inc.
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