China Biologic Waived Application of Preferred Shares Rights Agreement

    China Biologic Waived Application of Preferred Shares Rights Agreement

PR Newswire

BEIJING, June 10, 2013

BEIJING, June 10, 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 waived the application of its Preferred Shares Rights Agreement
dated as of November 20, 2012 (the "Rights Agreement") to the RAAS SPA (as
defined below).

On May 21, 2013, Shanghai RAAS Blood Products Co., Ltd. ("RAAS"), a public
company listed on the Shenzhen Stock Exchange and a direct competitor of the
Company in China, entered into a stock purchase agreement with Ms. Siu Ling
Chan ("Ms. Chan"), one of the stockholders of the Company, and her spouse, Mr.
Tung Lam (the "RAAS SPA", and the share acquisition transaction contemplated
thereby, the "Proposed RAAS Transaction"). Based on the terms of the RAAS SPA,
the board of directors of the Company previously determined on May 29, 2013
that RAAS had become an Acquiring Person as defined under the Rights
Agreement.

On June 7, 2013, RAAS issued a public announcement in Chinese, stating that
the shareholders of RAAS who attended its special shareholders meeting held on
the same day have unanimously voted against the Proposed RAAS Transaction and
RAAS has determined to terminate the Proposed RAAS Transaction. Later on the
same day, Ms. Chan filed a Schedule 13D/A (the "Chan 13D/A") and RAAS filed a
Schedule 13G (the "RAAS 13/G") with the U.S. Securities Exchange Commission.
Both the Chan 13D/A and the RAAS 13/G state that the RAAS SPA was mutually
terminated by the parties thereto on June 7, 2013, effective retroactively as
of May 21, 2013, the date on which the RAAS SPA was executed (the "RAAS SPA
Termination"). In light of the RAAS SPA Termination, the board of directors of
the Company made a determination today to waive the application of the Rights
Agreement to the RAAS SPA.

Mr. David (Xiaoying) Gao, Chairman and Chief Executive Officer of China
Biologic, commented, "We are pleased to learn the termination of the RAAS
SPA.Thanks to our board of directors with the majority members being
independent directors, prompt and decisive actions were taken in the best
interest of our company and shareholders as a whole to prevent a direct
competitor from disrupting our strategic development through an unfriendly
acquisition of a significant minority stake in our company. We are highly
confident in our business strategies as well as the growth opportunities ahead
and will continue to focus on solidifying our market position and executing
our business plan, while also ensuring corporate governance transparency and
increasing shareholder value along the way."

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
statements.

Contact:

China Biologic Products, Inc.
Mr. Ming Yin
Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com

ICR Inc.
Mr. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
E-mail: bill.zima@icrinc.com

SOURCE China Biologic Products, Inc.

Website: http://www.chinabiologic.com
 
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