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NEWS RELEASE
FOR IMMEDIATE RELEASE
SINOBIOMED SIGNS DEFINITIVE AGREEMENT TO ACQUIRE CHINESE PHARMACEUTICAL DISTRIBUTOR
ACQUISITION OF SUZHOU BOAI GIVES SINOBIOMED CONTROL OF SFDA GSP CERTIFIED PHARMACEUTICAL DISTRIBUTOR THAT EXPANDS MARKET REACH IN CHINA
Shanghai, China – August 9, 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"), signed a formal Equity Transfer Contract on August 6, 2007 with the equity owners of Suzhou Boai Medical Development Company ("Suzhou Boai") to acquire a 90% interest in Suzhou Boai, a pharmaceutical distribution firm.
Under the contract, all the equity owners of Suzhou Boai will transfer all of their equity to Shanghai Wanxing, except for one equity owner who will retain a 10% interest, for a transfer price of approximately USD$2.4 million. The transfer, when complete, gives Shanghai Wanxing control of Suzhou Boai, which is GSP certified by the Chinese FDA (SFDA). GSP stands for Good Supply Practice, and certification safeguards the safety and quality of pharmaceutical products in business transactions. The SFDA is modeled on the U.S. FDA.
According to management prepared financial statements, Suzhou Boai's 2006 total sales revenue was approximately US$18 million and for the 2007 year to June 30 it is approximately US$11 million. A U.S. GAAP audit is expected to be completed and filed by October 16, 2007.
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 Boai is engaged in the wholesale supply of biological products, chemical medicines and Chinese traditional medicine in southern and east central China.
Shanghai Wanxing's 3,000 square 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 Boai'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," according to Shanghai Wanxing President and CEO, Banjun Yang. "We intend to build on Suzhou Boai’s current customer base as well as widen our market penetration in China."
The acquisition of Suzhou Boai is the first step of Sinobiomed’s expansion strategy. The Company intends to acquire another distributor in northern China, as well as target pharmaceutical companies with manufacturing capability and existing product lines for acquisition. Sinobiomed’s near-term objective is to develop a large-scale, highly profitable integrated pharmaceutical enterprise that develops, manufactures and distributes a broad range of market-driven products that leverage its innovative biotechnology patents and processes.
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 market ready, 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.
Contact:
Sinobiomed Investor Relations | Toll Free: 1-866-588-0829 | Email: info@sinobiomed.com |
