China BioPharma Ltd. Eyes Buyout of Tianyuan Biotech JV; Move Away from Vaccines
Published: Nov 21, 2007
HANGZHOU, China, Nov. 20 /PRNewswire-FirstCall/ -- China Biopharma, Inc. 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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CONTACT: George Ji of China Biopharma, Inc., +1-609-651-8588,
Web site: http://www.chinabiopharma.net/