HANGZHOU, China, Nov. 20 /PRNewswire-FirstCall/ -- China Biopharma, Inc. (OTC Bulletin Board: CBPC) today announced its new plan of operation to take closer control and to better improve its current operation results. The company also plans to move away from the increasingly competitive and low margin vaccine business, and to enter new specialty pharmaceutical products.
"We plan to take more control on the available cash in out subsidiaries and move into higher market potential and higher margin specialty pharmaceutical products," says Peter Wang, CEO and Chairman of Board. "And we are negotiating with a few global vaccine manufacturers now for carrying their higher margin products, in order to avoid direct competitions with other manufacturers."
Recent changes in vaccine sectors have resulted in more vaccine manufacturers entering into low margin vaccine business such as flu vaccine, thus creating severe competition among, and squeezed profit margin of, vaccine distributors such as China Biopharma. Besides moving away from the low margin vaccine business, the company also starts to enter specialty pharmaceutical products such as the recently released anti-viral products.
China Biopharma has most of its operation in China. Working to take direct control on subsidiaries' operation and financial management, the company plans to increase its shareholding in China Zhejiang Tianyuan Biotech Co., Ltd., and eventually to have 100% control and ownership in this joint venture. With internally available resources, there would be no need to raise additional capital to complete the transactions. This is expected to improve current performance and increase operation stability.
"This new direction is expected to preserve available cash position and give us more operation flexibility," says Chunhui Shu, the new interim Chief Financial Officer. "In view of improvement and progress on our current operation results, we have made this plan to take more effective steps to strengthen our control over operating subsidiaries, preserve cash, apply available resources to, and refocus on higher margin, less competitive products with greater market potential."
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Some of the statements here discuss future events and developments, including the Company's future business strategy and its ability to generate revenue, income and cash flow, and should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking" statements can generally be identified by words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," and similar expressions. These statements involve a high degree of risk and uncertainty that exists in the Company's operations and business environment and are subject to change based on various factors that could cause actual Company results, performance, plans, goals and objectives to differ materially from those contemplated or implied in these forward-looking statements. Actual results may be different from anticipated results for a number of reasons, including the Company's new and uncertain business model, uncertainty regarding acceptance of the Company's products and services and the Company's limited operating history.
China Biopharma, Inc.
Tel: +1 (609) 651-8588
Attn. George Ji
|SOURCE China Biopharma, Inc.|
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