TAI'AN, China, Jan. 27 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (Nasdaq: CBPO) ("China Biologic," or the "Company"), one of the leading plasma-based biopharmaceutical companies in China, today responded to allegations regarding the Company, certain members of its Board of Directors and a significant employee in an article that appeared on several online financial websites.
The article, which was written by an investor who disclosed a short position in the Company, highlighted the circumstances surrounding a RMB20 million loan from one of the Company's founding shareholders, Beijing Chen Da Scientific Investment Co, to Dr. Zuying Du, the transfer of Dr. Du's 25% equity ownership of the Company's predecessor, Shangdong Missile Biological Products Co., and allegations of fraud and criminal activity by Mr. Tung Lam, CEO of the Company's primary operating subsidiary, Shandong Taibang, and by the husband of the Company's director, Ms. Li Lin Ling, occurring prior to 2005. The article also included references to what are purported to be official documents supporting the allegations.
The circumstances surrounding the Company's formation, including the
various legal proceedings have been disclosed in the Company's public filings
with the US Securities and Exchange Commission ("SEC"). In particular, the
legality of the equity transfer among the original founders has been confirmed
by various PRC courts and has withstood several appeals by Dr. Du. Furthermore,
in early 2007, the Company engaged Control Risks Group, a private risk
consultancy firm specializing in investigative serv
|SOURCE China Biologic Products, Inc.|
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