Influenza (Flu) - The Chinese Centers for Disease Control & Prevention (CDCs) recommends immunizing against influenza as soon as the vaccine becomes available. China Biopharma’s flu vaccine, approved by the Chinese State Food and Drug Administration (SFDA) for distribution, is among the first to be delivered and made available to the general public in China for the 2006-2007 Flu Season. Through its manufacturing joint venture partner, Zhejiang Tianyuan Biopharma Co., the Company began shipping its first batch of flu vaccines to local CDCs, the Xi’an Social Security Pension Fund Program, insurance companies and hospitals in August 2006. Management expects to deliver a total of three million doses by year’s end.
Epidemic Hemorrhagic Fever (EHF) – EHF is carried by rodents in Asia and causes devastating lung infections in humans. CBPC owns over 90% market share in China against this disease, and estimates it will sell one million doses of its EHF vaccine in 2006.
Epidemic Japanese Encephalitis (EJE) – EJE, the "Plague of the Orient," is the leading cause of viral encephalitis in Asia. An inflammation of the brain, EJE exists in epidemic proportions in temperate and northern tropical regions. Rates of EJE are steady and even increasing in the areas of South and Southeast Asia. (source: Public Health Agency of Canada). China Biopharma’s EJE vaccine was approved by the SFDA in December 2005 and will be available in China in early 2007.
Developing Products
Group A ,C, Y, W135 Meningococcal Polysaccharide – CPBC has successfully completed Phase III clinical trials and pending SFDA approval, the vaccine will be commercialized in early 2008.
Avian (“Bird Flu”) H5N1 Virus – By February 2004, the avian or “bird” flu spread across 10 countries in Asia and caused dozens of deaths in Thailand and Vietnam. In China, the bird flu affected more than half of all provinces and territories. CBPC stands to be a major player in creating and mass-producing a vaccine for a potential pandemic bird flu outbreak. In June 2006, China Biopharma received a copy of the H5N1 virus (a deadly virus transmitted from bird to human), and has begun animal testing on a vaccine.
Allergy vaccine – According to the American Academy of Allergy, Asthma and Immunology, 1 in 4 people suffer from an allergy worldwide. In fact, the allergy treatment and relief medicine category is growing over 10% per annum and is estimated to be an $18 billion global market. China Biopharma is developing an allergy vaccine in strategic alliance with a European allergy vaccine producer (who markets a similar vaccine in Europe) to reach the Chinese allergy market. China Biopharma will perform clinical studies, apply for SFDA registration, and retain the exclusive copyrights to market the vaccine throughout China.
The Company currently has two operational segments. One segment, consisting of CBL and its subsidiaries provides bio-pharmaceutical products. The other segment, which consists of CQCL and its subsidiary, was engaged in the business of providing telecommunications services and developing related technology. However, following the Company’s re-positioning of its business focus from telecommunications to bio-pharmaceutical operations, CQCL ceased carrying on any daily business activities and is currently looking for strategic partners in order to continue its business. Set forth below is a graphic representation of the current organizational structure of the Company and its subsidiaries.
China Biopharma Limited
China Biopharma Limited is Cayman Islands company and a wholly-owned subsidiary of the Company. CBL manages the operations of all the Company’s bio-pharmaceutical business in China.
Zhejiang Tianyuan Biotech Co., Ltd.
Zhejiang Tianyuan Biotech Co., Ltd is a Sino-US joint venture between CBL and Zhejiang Tianyuan. The Company owns 65% of ZTBC and Zhejiang Tianyuan owns 35% of ZTBC. ZTBC was formed on June 24, 2006 and was funded on December 22, 2006. Of the total $3,000,000 initial capitalization of ZTBC, CBL invested $1,950,000 and Zhejiang invested $1,050,000 in cash.
Zhejiang Tianyuan has agreed to perform all of the manufacturing functions on behalf of ZTBC and ZTBC will handle all future vaccine development and marketing. All the marketing and sales personnel of Zhejiang Tianyuan have been transferred to ZTBC.
Hainan CITIC Bio-pharmaceutical Development Co., Ltd.
In April 2006, ZTBC acquired 20% of the outstanding stock of Hainan CITIC Bio-pharmaceutical Development Co., Ltd. from three individuals in consideration for a payment of $600,000; In August 2006, ZTBC acquired an additional 40% of the outstanding stock of HCBD from CITIC Pharmaceutical and China Biological Engineering Corporation in consideration for a payment of $1,200,000. In December 2006, ZTBC acquired another 10% of the outstanding stock of HCBD from one individual in consideration for a payment of $300,000. The remaining 30% of HCBD is owned by Zhejiang Tianyuan (20%) and by one of its original owners (10%).
HCBD is a nationwide bio-pharmaceutical distributor in China and has established a distribution platform including “cold-chain” logistics which are the refrigeration logistics in the distribution chain. HCBD distributes the vaccines provided by local vaccine manufacturers, including ZTBC and Zhejiang Tianyuan and other bio-pharmaceutical products made by large global drug manufacturers, such as Merck.
China Quantum Communication Limited
China Quantum Communication Limited is a Cayman Islands company and a wholly-owned subsidiary of the Company. CQCL holds all of the Company’s telecommunications business interests and owns all the intellectual property of mobile VoIP technology. Following the Company’s decision to re-position its business focus from telecommunications to bio-pharmaceuticals, CQCL is no longer engaged in daily business operation activities. CQCL is currently seeking a strategic partner in order to be able to continue its telecommunications business operations.
Guang Tong Wang Luo Ke Ji (China) Co., Ltd.
Guang Tong Wang Luo Ke Ji (China) Co., Ltd. (also known as Quantum Communication (China) Co., Ltd (“QCCN”)) is a wholly-owned subsidiary of CQCL. QCCN has acted as the Company’s Chinese business center in order to support all of its administrative activities. In addition, QCCN operated a communication service operations center and a technology development center on behalf of CQCL. Following the Company’s decision to re-position its business focus from telecommunications to bio-pharmaceuticals, QCCN ceased its telecommunications-related business operations.
Some years are worse than others but they're always here... We had one in 1999 that was a mile wide and went all the way through the south side of the city. IT WAS HUGE!!!
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