The Street.com recently sat down with Ming Yin, head of investor relations and vice president of finance for China Biologic Products (CBPO).
China Biologics is the leading public plasma-based products manufacturer in China. The company saw its sales grow from $4 million in 2002 to $119 million in 2009 and is planning to expand its products into the world plasma markets.
Can you give me some background on your company?
China Biologic entered the United States capital markets in 2006. Our decision was largely prompted by the Chinese government's decision to start privatizing plasma collection centers, and we needed immediate capital to pursue strategic acquisition opportunitiesBefore 2008, China Biologic had one operating subsidiary, Shandong Taibang. By the end of 2008, we had completed two acquisitions with the purchase of a majority ownership in Guiyang Dalin and a 35% equity interest in Xi'an Huitian. With those two acquisitions, China Biologic became the largest non-state owned company in China's plasma industry. Where do you see the company in five years? 10 years? Until recently, we were a small plasma-based products manufacturer. In the next five years we will continue to execute a similar strategy through organic growth and pursuit of additional suitable strategic acquisitions to increase our market share in China. In the next five to 10 years, we want to have more global presence in the world plasma-based product markets. We view US-based Baxter (BAX) and Australian company CSL as our models for expansion. What are the various segment lines of the company? We have a fully integrated plasma business with the main products of Human Albumin Human Immunoglobulin for Intravenous Injection, and various hyper-immune products. We have more products in the pipeline, including Human Prothrombin Complex Concentrate and Human Coagulation Factor VIII. Our current revenues are mainly from the plasma protein derivatives, which is our core business and our strength. Who are your main competitors? In China, our main competitors are Shanghai RAAS Blood Products, Hualan Biological Engineering and Beijing Tiantan Biological Products. Internationally, we face competition from CSL and Baxter because they all are selling their human albumin products in China. We believe international companies will have limited opportunities in China in the future as they only have permission to sell Human albumin products.
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