Updated on 3 January 2013
New obstacle for China Biologic Products - Government approval of land use rights for construction of a new production facility at its Guizhou Taibang subsidiary is delayed
Singapore: China Biologic Products, a leading fully integrated plasma-based biopharmaceutical company in China, announced that the construction of a new production facility at its Guizhou Taibang subsidiary could be delayed due to slower-than-expected government approval of land use rights.
The company is working closely with local authorities to secure approval as soon as possible and will inform investors once it makes material progress in these regards along with an updated schedule for when it expects to complete the new Guizhou facility.
The company expected to commence preparation work for this project in the late 2012 and complete the project by mid 2014. The company expects to halt production at its existing production facility in Guizhou by the end of 2013 as a more stringent good manufacturing practice (GMP) standard enacted by China's State Food and Drug Administration (SFDA) goes into effect.
China Biologic is evaluating the possible impacts of a production suspension in Guizhou by the end of 2013 and the delay of the construction of the new facility, including, among others, the possible reduction in sales revenue and possible additional investment in GMP upgrading.
To mitigate possible negative impacts and ensure supply continuity, the company is also evaluating the feasibility of reallocating certain production resources, build up inventory, and adjust shipping plans for 2013.