China Biologic Products is known as one of the leading plasma-based pharmaceutical companies in the People’s Republic of China. The young company took a major step towards catching the attention of investors on Wall Street with the announcement that on September 11, 2009 they entered into a strategic research and development agreement with the Institute of Blood Transfusion (IBT) to strengthen their research and development capabilities and manufacturing processes.
IBT, which is a division of the Chinese Academy of Medical Sciences and Peking Union Medical College, is a leading institute in China which specializes in a variety of plasma-based research that includes the safety of blood transfusions and molecular biology. The union between China Biologic and IBT will include the use of IBT’s technology to enhance safe and efficient plasma collection, and increase the range of plasma-derivative products that can be manufactured by the company. Another key aspect of the agreement is that it will also entitle China Biologic to utilize IBT’s platform technologies.
China Biologic is led by Chao Ming Zhao who serves as the company’s CEO. Mr. Zhao has a stellar reputation in the industry with over 10 years of experience in finance, accounting and internal control. Zhao holds an MBA in finance from the Chinese University of Hong Kong and became CEO of China Biologic in June 2008 after serving as the company’s Direct for two years.
When asked about the impact of this agreement, Mr. Zhao was quoted as saying, “We are committed to being a technology leader in the area of plasma-based pharmaceuticals and we constantly seek to improve our collection and manufacturing processes. China’s plasma-based industry is underpenetrated, partially due to the scarcity of investment in the research and development of new products, as compared to similar investment in more developed countries. We are pleased to enter into the research and development agreement with IBT, which we believe will enable us to leverage IBT’s advanced scientific resources to accelerate our development of new products and improve the efficiency of our operations.”
Currently, China Biologic is trading in the $6.80 range and continues to soar from its 52-week low of $1.05. The company is constantly producing positive news and has started to truly catch the attention of investors on Wall Street. With state-of-the-art technology in place and an agreement with IBT that could have a global impact, now may be the time to start researching China Biologic while you can still gain leverage.