New Joint Venture Focused on Multi-Million Dollar Short-Term Revenue Opportunities
CALGARY, Feb. 2, 2012 /CNW/ - SemBioSys Genetics Inc. (TSX:SBS), today announced that its product and platform development collaboration agreement (the "Agreement") with Tasly Pharmaceutical Co., Ltd ("Tasly") of Tianjin, China, and its wholly owned subsidiary Tasly US have received all necessary Chinese (People's Republic of China and local Chinese Government) approvals and the business license for the newly formed Company based in Tianjin, China, Tasly-SemBioSys Bio-Pharmaceutical, Technology Co., Ltd., to commercialize near, medium and long-term healthy living, nutritional, and pharmaceutical products utilizing Tasly and SemBioSys' plant-based technology and expertise.
"Today's announcement is part of a larger strategic plan for SemBioSys and Tasly to collaborate on a number of fronts," said James Szarko, President and CEO of SemBioSys. "With this long approval process now completed we will rapidly develop and commercialize a number of exciting new products into Tasly's well established distribution channels," he concluded.
The new Company is structured as a Sino-Foreign Equity Joint Venture (the "Joint Venture"), and will develop and commercialize products for China and the world. Development work on the first products and product programs is already under way. Select products and programs that are under evaluation or under development with a range of timelines are listed below:
Research and develop a new generation of Modern traditional Chinese medicine (TCM) products utilizing oilbodies to develop and further enhance TCM products. The total international TCM market is estimated to be US$20 billion and Tasly's revenues are approximately US$1 billion growing at in excess of 20% per annum.
Develop a line of functional food and beverages based on oilbodies that result from SemBioSys' patented oil seed processing platform. The oil and proteins are produced in a continuous cold system that does not denature the oil and proteins, resulting in higher quality products with greater market value than those currently produced using standard heat and hexane extraction methods. The global functional food and beverage market is estimated to exceed US$130 billion by 2015. Tasly recently entered this exciting new market and believes its current distribution provides huge upside growth potential in China based on the results of its initial products.
Continue development of SemBioSys' protein feed additive for the global aquaculture markets. China's market accounts for approximately 70% of the global aquaculture market, which is estimated to be US$86 billion annually.
Research and develop modified oils for nutritional health.
Continue development of plant produced insulin for China and the rest of world. Initial program would explore growing requirements and optimizing seed yield for Chinese agriculture.
Research projects related to the discovery and development of plant-made pharmaceuticals and TCMs.
About Tasly and the Partnership
Tasly is one of China's largest pharmaceutical companies and is China's 2nd producer of TCMs, which are derived from plants. Its lead drug, Tasly Cardiotonic Pill, is the #1 selling TCM in China for the past seven years. In 2011, Tasly recorded revenues of 6.5 billion RMB with a 10 year compounded growth rate in excess of 20%. Tasly also has operations in the United States, Africa, South East Asia, and the UK.
SemBioSys is a health and wellness company that utilizes its renewable, patented plant seed oilbody and plant-based protein expression technology platforms to develop and produce high-value proteins and oils to make nutritional products and drug candidates.
SemBioSys is entitled to 30% ownership and profit sharing of the Joint Ventures profits for contributing select intellectual property. Tasly will contribute 100 per cent of the cost of the Joint Venture's global research, development and product commercialization. Further, Tasly will facilitate preclinical, clinical, regulatory services, manufacturing and commercial expertise, and utilize its significant sales force to commercialize the Joint Venture's products in China. Its sales force covers approximately 25,000 Chinese hospitals, retail pharmacies and direct to consumer markets with a total of 1,500 representatives.
ABOUT TASLY PHARMACEUTICAL CO., LTD.
Tasly Pharmaceutical, based in Tianjin, China, was founded in May 1994. Through its development, Tasly has become a high-tech group whose scope of businesses include modern TCMs, chemical & biological drugs, healthcare products, and functional foods. The Company has a large research institute and oversees its own product development, planting, manufacturing, commercial sales, and distribution. Tasly manufactures and sells its traditional Chinese medicines, generic drugs, vaccines, and personal care products in China and in several other countries around the world. Tasly entered a drug-wholesaling Venture with the UK's Co-operative Group in 2007. For more information about the Company, please visit www.tasly.com.
ABOUT SEMBIOSYS GENETICS INC.
Calgary, Alberta-based SemBioSys is a health and wellness company that utilizes its patented plant seed-based oilbody and genetic expression technology platforms to develop high-value proteins, oils, and drug candidates in oil seed plants. SemBioSys' seed-based protein and oil expression system can enable unique and novel products and exceptionally low cost of production with unprecedented scalability. SemBioSys is focusing the platform through global partnerships to develop healthy living, nutritional, and pharmaceutical products. SemBioSys is listed on the Toronto Stock Exchange under the ticker SBS. More information is available at www.sembiosys.com.
Forward Looking Statement and Disclaimer
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to: the fact that the Company is a development stage entity and currently relies on investment and not profits to fund it operations; the Company's ability to continue to secure and attract future strategic and investment capital; the Company's ability to continue to successfully development its existing and future product candidates or commercialize them; the Company's exposure to changing global market dynamics, addressable markets and global regulatory environments required to register and market its product candidates; the acceptance of IND's by the FDA in respect of clinical studies; the submission of CTA's to the appropriate European authorities; the successful initiation and timely and successful completion of clinical studies; the establishment of future corporate alliances and partnership;, the impact of competitive products and pricing; new product development; uncertainties related to the regulatory approval process; and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. On June 17, 2011, at our Annual and Special Meeting of Shareholders, shareholders unanimously approved a special resolution, approving an amendment to the Company's articles of incorporation to consolidate its issued and outstanding Common Shares. This provides the board of directors of the Company the authority, in its discretion, prior to June 17, 2012, to select the exact consolidation ration, provided that (i) the ration may be no smaller than one post-consolidation Share for every (8) pre-consolidation Common Shares and no larger than one post-consolidation Share for every thirty (30) pre-consolidation Common Shares, and (ii) the number of pre-consolidation Common Shares in the ratio must be a whole number of common shares. There is no current plan to effect such a Share Consolidation. However, if undertaken, the Company's total market capitalization immediately after the proposed consolidation may be lower than immediately before the proposed consolidation. A decline in the Common Shares after a Share Consolidation may result in a greater percentage decline than would occur in the absence of a consolidation, and the liquidity of the Common Shares could be adversely affected following such a consolidation. In addition, the consolidation may result in some shareholders owning "odd lots" of less than 100 Shares, on a post-consolidation basis, which may be difficult or more expensive to sell on a per share basis, than a round lot of shares. These are only some of the risks associated with a potential Share Consolidation. Further risks regarding the Company are set out in the annual information form found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
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