China Biologic's Dalin acquisition progresses

China Biologic Products, one of the leading biopharmaceutical companies in China, has completed the third installment payment towards the  acquisition of a 90% equity interest in Chongqing Dalin Biologic  Technologies for a total consideration of 194.4 million renminbi ($28.4  million), in accordance with the terms of an equity transfer agreement  with the Dalin shareholders. The firm is now entitled to all the rights  and privileges of a 90% shareholder in Dalin and in its 54%  majority-owned operating subsidiary, Qianfeng Biological Products, one  of the largest plasma-based biopharmaceutical companies in China,  located in Guiyang, Guizhou Province.

On March 26, Dalin received a certificate of approval from the municipal  government in Chongqing to establish a Taiwan, Hong Kong, Macao and  overseas Chinese invested enterprise in China, which allows Dalin to  operate as a Sino-foreign joint venture and, on April 10, gained  business licenses from the Chongqing Administration for Industry and  Commerce to operate for 30 years.

Expected benefits of the buy include increased plasma collection to  almost double current levels and significant increases in production  capacity, well as consolidating R&D efforts and raising prices for  Qianfeng's products through China Biologic's strong brand name.