Navigation Links
American Oriental Bioengineering Comments on Recent Property Purchase
Date:1/9/2009

NEW YORK, Jan. 9 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB) ("AOBO" or "the Company"), a leading marketer, distributor and manufacturer of pharmaceutical and healthcare products in China, today commented on its recent purchase of buildings and land in the Beijing Economic-Technological Development Area (BDA) for approximately $70.0 million.

Mr. Tony Liu, Chairman and Chief Executive Officer of AOBO, stated, "Our recent property purchase in the BDA is a long-term investment in AOBO which builds out our multi-functional headquarters and centralizes our management in Beijing, while deepening our presence in a very important development region focused on attracting leading pharmaceutical companies. Additionally, at a time when our significant cash position yields negative real returns, this fixed asset allocation does not constrain our financial flexibility, but rather, we believe, positions us to secure government support in various forms, such as R&D grants related to the PRC's stimulus plan as well as potential low-interest bank loans."

Liu continued, "While we have not always elaborated on our motivations at the time, due to economic, competitive and other reasons, we consistently and effectively have navigated China's complex economic and competitive landscape, and have created significant shareholder value in the process. We believe this property purchase is no departure from AOBO's proven past."

"Our goal remains consistent. We continue to focus on becoming a top-five pharmaceutical company in China and we are aggressively yet prudently pursuing organic and acquisition-led growth. We emphasize that China's challenging economic environment and the uncertainty created by the upcoming healthcare reform necessitates that we remain flexible, influential and creative in our acquisition strategy. We intend to consider a variety of strategic opportunities in technology, new products, partnerships and minority or majority stakes, in order to ultimately create long-term shareholder value. Lastly, we note that AOBO's consistent internally generated cash flow ensures that we do not anticipate returning to the capital markets in the coming year, and also bolsters our competitive and negotiating position versus peers," concluded Liu.

Details of the Transaction

The Company completed a Purchase Agreement with Beijing Century East Fuel Power Science & Technology Research and Development Co. Ltd., through which AOBO acquired buildings occupying 14,615 square meters (157,314 square feet) as well as the land use right to 22,008 square meters (5.4 acres) of land on which the building is located in the Beijing Economic-Technological Development Area. The cash transaction of $70.0 million was funded from the Company's internally-generated cash flow.

About American Oriental Bioengineering Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended September 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.


'/>"/>
SOURCE American Oriental Bioengineering, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related biology technology :

1. Tips from the journals of the American Society for Microbiology
2. Elsevier Introduces The American Journal of Medicine Blog
3. The American Ceramic Society releases new ACerS-NIST phase equilibria diagrams CD-ROM database
4. Transgenomic Receives Accreditation From College of American Pathologists
5. Proteolix Announces Positive Data From Two Ongoing Phase 2 Clinical Trials of Carfilzomib in Multiple Myeloma at the 50th Annual Meeting of the American Society of Hematology
6. Multiple Vimpat(R) (lacosamide) Studies Presented at American Epilepsy Society Annual Meeting
7. Proteolix Presents Preclinical Data for Oral Proteasome Inhibitor PR-047 at the 50th Annual Meeting of the American Society of Hematology
8. 100% Non-Incision Cosmetic Surgery, The 'Frame Thread Lift,' Debuts December 14, 2008 At American Academy Of Anti-Aging Medicine In Las Vegas
9. BioCryst to Present Three Posters During the 50th American Society of Hematology Annual Meeting and Exposition
10. Portola Data on Its Novel Syk Inhibitors and Novel Universal Factor Xa Inhibitor Antidote to be Presented at 2008 American Society of Hematology (ASH) Meeting
11. Growing Interest in DNA-Based Genetic Testing Among African American with Historic Election of President Elect Barack Obama
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/3/2016)... ... May 03, 2016 , ... Leading CEOs from biotech, ... 31st and June 1st at The Four Seasons Hotel Boston. , The Boston ... sciences, offering exclusive access to key decision makers who influence deal making and ...
(Date:5/3/2016)... 2016 - And Other Rising ... of Those Competitor Biologics  - Biosimilar Drug ... Prospects ,  Who are the most important ... are their sales potentials? Discover, in our updated survey, ... opportunities and revenue forecasting. Visiongain,s ...
(Date:5/2/2016)... , May 2, 2016 Q ... its technology partner Mannin Research Inc. will be attending ... which takes place from May 1-5, 2016 in ... be meeting with its vendors and research partners. The ... development goals and other collaborative opportunities for the MAN-01 ...
(Date:4/29/2016)... Italy (PRWEB) , ... April 30, 2016 , ... The ... extraordinary textile design, the bioLogic team explored how bacterial properties can be applied to ... of using Natto bacteria, which move in response to humidity change. The team harvested ...
Breaking Biology Technology:
(Date:3/14/2016)... , March 14, 2016 NXTD ... growing mobile commerce market, announces the airing of a new ... starting the week of March 21 st .  The commercials ... including its popular Squawk on the Street show. --> ... on the growing mobile commerce market, announces the airing of ...
(Date:3/10/2016)... PUNE, India , March 10, 2016 ... to a new market research report "Identity and Access ... SSO, & Audit, Compliance, and Governance), by Organization Size, ... Forecast to 2020", published by MarketsandMarkets, The market is ... to USD 12.78 Billion by 2020, at a Compound ...
(Date:3/9/2016)... , March 9, 2016  Crossmatch ® , ... enrollment solutions, today announced the addition of smart ... Altus multi-factor authentication platform. New contextual and ... to step-up security where it,s needed most — ... Washington, DC . --> ...
Breaking Biology News(10 mins):