TAIAN CITY, Shandong, China, March 23 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO) ("China Biologic" or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), announced that, its indirect majority owned subsidiary, Shandong Taibang Biological Products Co., Ltd. ("Taibang"), has completed the government approval process for the transfer of 35% of the equity interest in Xi'an Huitian Blood Products Co., Ltd. ("Huitian"), a biopharmaceutical company based in Xi'an, Shaanxi Province, to Taibang, for an aggregate purchase price of RMB 44,000,000 (approximately $6.44 million) in cash (the "Equity Transfer"). For details regarding the terms of the Equity Transfer see the current report on Form 8-K filed by the Company on October 16, 2008.
On January 15, 2009, Huitian received a certificate of approval (the "Certificate") from the provincial government in Shaanxi Province for the establishment of a foreign invested enterprise in China, which allows Huitian to operate as a Sino-foreign joint venture; and on March 17, 2009, Huitian, as a Sino-foreign joint venture, received business licenses from the Administration Bureau for Industry and Commerce in Xi'an, Shaanxi Province, to operate for 20 years.
Expected benefits of the acquisition include: -- Increase in plasma supply and additional production capacity; -- Expansion into Shaanxi Province, which has had historically high collection volumes; and -- Creation of additional synergies by leveraging overhead and research and development spending.
"We are pleased to announce the completion of this acquisition, which will
strengthen our competitive position in China's plasma-based biopharmaceutical
industry," said Mr. Chao Ming Zhao, CEO of China Biologic Products. "We
believe that the acquisition of Huitian will en
|SOURCE China Biologic Products, Inc.|
Copyright©2009 PR Newswire.
All rights reserved