China Bio-Immunity Corporation Completes Share Exchange and Reverse Merger
Lawford is the holding company of Dalian Jingang-Andi Bio-Products Co. Ltd.(''JGAD''). Under the share exchange agreement, China Bio-Immunity will carryout the business of JGAD as its sole line of business. JGAD is a leading,fully integrated biotechnology company focused on researching, developing,manufacturing and marketing biopharmaceutical products primarily within China.
The Company's revenue generating product portfolio is primarily comprisedof Rabies Vaccine for Human Use with Vero Cell, a unique biological productthat is used to effectively control and combat rabies disease, and MumpsVaccine, which is produced from the live, attenuated S79 strain of the mumpsvirus. In addition to its current products, the Company's product pipelineincludes five next-generation vaccine-based prophylactics and therapeutics invarious stages of development for both the prevention and treatment of variousviruses and infectious diseases. The Company believes that the potentiallaunch of its pipeline products will bring significant market opportunities inthe next three to five years.
In conjunction with the share exchange agreement, the Company today fileda Current Report on Form 8-K with the Securities and Exchange Commission,which discloses detailed information about the Company and its subsidiaries,including financial statements for the fiscal years ended December 31, 2006and 2007, and the three months period ended March 31, 2008.
In the first quarter of 2008, the Company generated revenue of $6.3million, representing an increase of 506% from $1.0 million in the firstquarter of 2007. Net income increased 961% to $2.2 million in the firstquarter of 2008, from $0.2 million in the first quarter of 2007. Thesignificant increase in revenue and net income was primarily attributed to thenew regulation implemented by the State Food and Drug Administration (''SFDA'')at the end of 2006. The new regulation placed heightened restrictions onproduct quality. As a result, a significant number of the Company'scompetitors' products failed to meet the heightened requirements set forth bythe SFDA. On the contrary, each batch of vaccine manufactured by JGAD passedthe relevant quality inspection; consequently the Company experiencedsignificant increase in sales volume and its brand name, ''JGAD'', gained anoutstanding reputation.
In the fiscal year ended December 31, 2007, the Company generated revenueof $24.9 million, representing an increase of 256% from $7.0 million in thefiscal year ended December 31, 2006. Net income increased 278% to $14.0million in 2007, from $3.7 million in 2006. Increased sales of the RabiesVaccine, as well as the launch of the Mumps Vaccine during the fiscal year2007, drove the improved financial performance.
Mr. Quanfeng Wang, Chief Executive Officer of China Bio-Immunity, stated,"Today's transaction provides our Company with a solid platform for growth aswe aggressively pursue opportunities in China's vaccine market. We believethat we are well-positioned to compete in this fast-developing sector givenour strong JGAD brand, diverse product portfolio, proven R&D capabilities,established sales and marketing network and favorable cost structure. Withaccess to the U.S. capital markets, we believe we will be in a compellingposition to further strengthen our distribution network both inside andoutside of China, develop innovative new products, and provide excitingopportunities for our team to
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