China Biologic Comments on the Proposed Shanghai RAAS Transaction
BEIJING, May 24, 2013
BEIJING, May 24, 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
Company has recently learned from a public announcement issued by Shanghai
RAAS Blood Products Co., Ltd. ("Shanghai RAAS"), a public company listed on
Shenzhen Stock Exchange, that on May 21, 2013, Ms. Siu Ling Chan ("Ms. Chan"),
one of the shareholders of the Company, and her spouse, Mr. Tung Lam, entered
into a stock purchase agreement with Shanghai RAAS. According to the stock
purchase agreement, Ms. Chan agreed to sell to Shanghai RAAS an aggregate of
2,657,660 shares of the Company's common stock, representing 9.9% of the
Company's outstanding shares (the "Proposed Shanghai RAAS Transaction").
Pursuant to Shanghai RAAS corporate regulations and Chinese law, the
transaction is subject to obtaining approval from Shanghai RAAS's shareholders
and all necessary governmental authorities or agencies, as well as satisfying
certain other closing conditions. Shanghai RAAS also stated in its
announcement it has an intention to develop strategic business cooperation
with the Company.
China Biologic would like to clarify that the Company had no knowledge of the
Proposed Shanghai RAAS Transaction prior to the public announcement issued by
Shanghai RAAS, nor has the Company had any communication or discussion with
Shanghai RAAS regarding this transaction. The Company considers Shanghai RAAS
as one of its direct competitors in China and therefore does not view the
Proposed Shanghai RAAS Transaction as a viable transaction. Given the
competition between Shanghai RAAS and the Company and the differences between
the two companies in terms of business strategies and technological
capabilities, the Company currently has no intention to discuss or explore any
business cooperation with Shanghai RAAS.
As disclosed in Shanghai RAAS' public announcement, it is apparent that
Shanghai RAAS is aware of the fact that Ms. Chan's shareholding status with
the Company is under dispute in a pending case in Hong Kong. As previously
disclosed by the Company on March 12, 2013 on a Form 8-K filed with the United
States Securities and Exchange Commission, the Company was notified, by a Hong
Kong solicitors firm representing a group of individuals, of a litigation (the
"Hong Kong Litigation") filed in the High Court of Hong Kong against Ms. Chan
and her spouse, Mr. Tung Lam as well as certain other defendants. Based on
information provided by the Hong Kong solicitors firm, the Company understands
that up to 5,178,962 shares of the Company's common stock held by Ms. Chan may
be brought into question during the Hong Kong Litigation. Based on the
Company's shareholder records, Ms. Chan is currently a registered shareholder
of 5,362,624 shares of the Company's common stock.
China Biologic will closely monitor this case and further developments
associated with the Proposed Shanghai RAAS Transaction and reserves the right
to take any necessary and appropriate actions, including but not limited to
implementing the shareholders rights plan to block the Proposed Shanghai RAAS
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. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
SOURCE China Biologic Products, Inc.
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