China Biologic Collaborates with Blood Transfusion Institution to Strengthen R&D

China Biologic Products, Inc. (CBPO.OB), a company based on blood plasma products, entered an R&D agreement with the Institute of Blood Transfusion of Chengdu, Sichuan Province. IBT is a division of the Chinese Academy of Medical Sciences and Peking Union Medical College. For China Biologic, the alliance will serve to strengthen its R&D capabilities and manufacturing processes.

Founded in 1958, IBT is the exclusive state-level institute of transfusion medicine. Its research areas include the safety of blood transfusions, blood immunology, transfusion disposable materials, blood biochemistry and molecular biology. Besides improving safe and efficient plasma collection, China Biologic hopes the collaboration will develop new plasma-derived products. China Biologic also gains access to IBT’s platform technologies, including recombinant protein therapeutics, monoclonal antibody technology and diagnostics.

China Biologic will provide partial funding, plasma, the use of its manufacturing facilities, and access to its research and development resources. IBT will supply specialized training and education to China Biologic’s research staff, and it will secure funding from national and provincial funding bodies.

China Biologic will have priority purchase rights to commercialize any new technologies or products that result from the collaboration.

Disclosure: none.

Comments

[balabanovj:]

This is actually one of the best developements for CBOP. I bought in last year on the announcement of planned acquisitions, which of course have done very well for them, but with acquisitions alone, I couldn't see any dramatic future growth, outside of exports, gradual increase in pricing, and the general growth in health care access in China. This collaboration changes everything and tells me that CBOP is striving to diversify into full fledged discovery/R&D biotech. If successful, you can be sure that they'll develope and grow new revenue streams from this- monoclonals, protein based therapies/drugs, etc. The company is now large enough and are at that inflection point where their earnings are great enough to fund clinical trials as well as the construction of new facilities to manufacture any new products they might develope out of this collaboration. In my view, this is a rock solid company with great management, in a recession proof business, with plenty of organic and acquisition based growth potential.

James B. Balaban, M.D.

Oct 04 09:29 PM