China Biologic's Guizhou Taibang Subsidiary Announces Update Regarding GMP Upgrading
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 statements.
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.