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China Biologic Products Enters Into Agreement to Acquire 90% Controlling Interest in Chongqing Dalin Biologic Technologies Co., Ltd.
Date:10/2/2008

tfolio and achieve our geographic expansion plans. After the closing of our acquisition, our combined production of plasma-based products is expected to reach approximately 450 tons per year and our facilities will have a combined capacity to produce 1100 tons per year. More importantly, we expect to achieve significant synergies and economies of scale through consolidation of our sales and administrative teams, increased bargaining power with suppliers and more efficient utilization of resources such as sharing our technological know-how."

Currently, China Biologic is the only approved manufacturer of plasma-based biopharmaceuticals in Shandong Province, which has a population of 93 million. China Biologic currently produces about 200 tons of plasma-based products per year and has 700 tons of annual production capacity. China Biologic had revenues of $32.4 million and net income of $8.2 million in 2007. Qianfeng is one of the largest plasma-based biopharmaceutical companies in China and the only operating manufacturer in Guizhou Province, which has a population of 39 million. Qianfeng produces about 250 tons of products per year with annual production capacity of 400 tons. China Biologic believes that Qianfeng currently has approximately 9.5% market share in China, as compared to the Company's 6.1%, which would result in a combined market share of approximately 15.6%. The top 6 largest plasma-based biopharmaceutical companies in China including Qianfeng have a total market share of approximately 50%.

Qianfeng is in compliance with Good Manufacturing Practices ("GMP") standards, and has been approved by the PRC's State Food and Drug Administration ("SFDA") to produce six types of plasma-based products including Human Albumin, Human Immunoglobulin, Human Intravenous Immunoglobulin, Human Hepatitis B Immunoglobulin, Human Tetanus Immunoglobulin and Human Rabies Immune Globulin.

Qianfeng owns 7 plasma collection stations in Guizhou Province, of whi
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SOURCE China Biologic Products, Inc.
Copyright©2008 PR Newswire.
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