Sinobiomed Inc. is a leading Chinese developer of recombinant protein drugs. Sinobiomed’s combination of advanced technology and expertise enables the Company to produce safe, high-yield, high-efficacy recombinant protein drugs at extremely low cost. Sinobiomed employs a patented low-cost, high-yield production process to enhance bioactivity and guarantee the highest levels of purity.

Sinobiomed’s research team has developed strong strategic alliances with leading Chinese research hospitals and institutes for collaborative development of patented and patentable techniques and treatments. They include the Second Military Medical University (SMMU), its affiliate hospital, Changhai Hospital, and Fudan University. All three are located in Shanghai.

The Company has also established a nationwide sales and marketing network and international marketing support programs. In September 2007, it acquired a 90% interest in the Suzhou Boai Medical Development Company an established pharmaceutical distribution company. The acquisition gives Sinobiomed control of the SFDA GSP-certified firm with an established customer base. GSP stands for Good Supply Practice, and certification safeguards the safety and quality of pharmaceutical products in business transactions. Sinobiomed expects the acquisition will expand its market reach and accelerate sales.

Further strengthening the Company’s ability to develop biopharmaceuticals for global markets are well-established relationships with internationally recognized health researchers and organizations, including the World Health Organization and the Program for the Appropriate Technology in Health (PATH).

Sinobiomed’s integrated research and development facility in Shanghai includes:

• a 20,000-square-meter facility for integrated R&D, manufacturing, quality control, and sales and marketing;
  
• a 3,000-square-meter Good Manufacturing Practice (GMP) plant certified by Chinese State Food and Drug Administration (SFDA).

Founded in 1996 as Shanghai Wanxing Biopharmaceutical Co. Ltd., the Company has a workforce of 140.

Now an 82% owned Sinobiomed subsidiary, Shanghai Wanxing was designated a "High and New Technology Enterprise" by the Science and Technology Commission of the Municipality of Shanghai in 2007 accordance with standards set by the Chinese Ministry of Science and Technology. The Chinese government’s preferential policies grant joint venture companies such as Shanghai Wanxing that receive the designation a number of significant benefits, including:

• An enterprise tax exemption in its first two years of profitability;
  
• A tax reduction of 50% (from 15% to 7.5% in its third to fifth years of profitability);
  
• Exemptions on import duties and value added tax for equipment imported for research and production; and
  
• Exemptions on export duties.