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NEWS RELEASE
FOR IMMEDIATE RELEASE
SINOBIOMED SIGNS LETTER OF INTENT TO ACQUIRE PHARMACEUTICAL DISTRIBUTOR
Acquisition Would Give Sinobiomed Control of SFDA GSP Certified pharmaceutical distributor and expand market reach throughout China
Shanghai, China – May 23, 2007 – Sinobiomed Inc. (“Sinobiomed”, or “the Company”) (OTCBB: SOBM) is pleased to announce that its 82% owned subsidiary, Shanghai Wanxing Bio-pharmaceuticals Co., Ltd. (“Shanghai Wanxing”), has signed a letter of intent with the equity owners of Suzhou Baoi Medical Development Company (“Suzhou Baoi”) to acquire their company.
The acquisition is to be accomplished through an equity transfer of not less than 80% from the equity owners of Suzhou Baoi to Shanghai Wanxing. The transfer, when completed, would give Shanghai Wanxing control of Suzhou Baoi, which is GSP certified by the Chinese FDA (SFDA). The SFDA is modeled on the U.S. FDA. GSP stands for Good Supply Practice, and certification safeguards the safety and quality of pharmaceutical products in business transactions.
Suzhou Baoi’s total 2006 sales revenue was approximately 170 million RMB (US $21 million). The pharmaceutical distribution company, located in Suzhou, about 100 km east of Shanghai, has two wholly owned subsidiaries; one sells vaccines, the other medical devices. Suzhou Baoi is engaged in the wholesale supply of biological products, chemical medicines and Chinese traditional medicine.
Shanghai Wanxing’s 3,000 sq. meter manufacturing plant in Shanghai already has SFDA GMP certification. GMP stands for Good Manufacturing Practice, which focuses on product quality and hygiene practice during the manufacturing process.
“The acquisition of Suzhou Baoi’s well developed product distribution network – in combination with Shanghai Wanxing’s existing products, robust product pipe line and GMP certification, is expected to accelerate and expand sales and revenue throughout China,” according to Shanghai Wanxing President and CEO, Banjun Yang.
The letter of intent, signed May 22, 2007, stipulates that the formal transfer agreement will be executed one month after the signing. The terms of the agreement call for an equity transfer of not less than 80% from the equity owners of Suzhou Baoi to Shanghai Wanxing. The transfer price is initially set at two times Suzhou Baoi’s authorized capital of RMB10 million, about US $2.5 million. The final transfer price, however, shall be determined depending on a financial audit report.
ABOUT SINOBIOMED INC.
Sinobiomed Inc. is a leading Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: two on the market, one approved and awaiting a GMP certificate prior to market introduction, four in clinical trials and three in research and development. The Company’s products respond to a wide range of diseases and conditions, including malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. Sinobiomed also has proven expertise in recombinant protein manufacturing technology and a patented low-cost, high-yield production process to enhance bioactivity and guarantee the highest levels of purity. (www.sinobiomed.com).
Contact:
Sinobiomed Investor Relations | Toll Free: 1-866-588-0829 | Email: info@sinobiomed.com |
