Fact Sheet

INVESTOR FACTS - Stock Information

China Biopharma, Inc. Stock Symbol: CBPC.OB
Shares Outstanding: 85.6 Million
Estimated Public Float: 8 Million
Insider Ownership: 45%

BUSINESS SUMMARY
 
Vaccines have long aided the world’s defense against diseases, while creating a constant cycle of new medical challenges and technology breakthroughs. The advent of the avian or ‘bird’ flu epidemic and SARS (severe acute respiratory syndrome) outbreak rapidly spread across Asia, taking lives and forever changing the role of preventative medicine, namely vaccines. In the world’s most populous country of China, the vaccine market has increased four times in the past decade and is steadily growing 30% annually. China Biopharma Inc. (OTCBB: CBPC) is a fast-growing biopharmaceutical company that develops and distributes vaccine products that capitalize on the high-growth vaccine market in China.
 
Through its operating subsidiaries, Zhejiang Tianyuan Biotech Co., Ltd. and Hainan CITIC Biopharmaceutical Development Co., Ltd., China Biopharma’s current products include human vaccines for Influenza (the “flu”), Epidemic Hemorrhagic Fever (EHF), and Epidemic Japanese Encephalitis (EJE). Through international partnerships, the Company is also actively developing new vaccines, including one for allergies, which will further strengthen its intellectual properties. The Company serves roughly 40% of all Chinese vaccine companies and holds 10% of the overall vaccine market in China.
 
Close industry alliances, including the (Chinese) Center for Disease Control, and a countrywide distribution platform, should help increase domestic market share. Concurrently, the Company is forming global alliances and pursuing acquisitions to develop new products and sales channels in China, the United States and Europe.
 
INVESTMENT HIGHLIGHTS
 
Explosive Market – The Chinese market for flu vaccinations has grown exponentially from 3.9 million doses in 2000 to 22.3 million doses in 2005, and on average grows 30% every year.
 
Market Reputation – China Biopharma has the largest independent vaccine distribution network that consists of four distribution centers and a “cold-chain” (temperature controlled) distribution channel covering 268 major cities in China.
 
Strategic Alliance – CBPC retains a close relationship with Chinese Center for Disease Control (CDC), providing local CDCs vaccinations and a high-capacity facility to readily respond to emerging infections/epidemics in China.
 
Innovative Product Pipeline – In addition to marketing vaccines for influenza, Epidemic Hemorrhagic Fever, and Epidemic Japanese Encephalitis, CBPC and its joint venture partners are co-developing cutting-edge products, including allergy and bird flu vaccines.
 
Near-Term Upside – Management anticipates to generate $10 million in annual revenues and positive net income in 2006.
 
Management Expertise – CBPC has considerable experience operating international public companies and retains a number of top scientists on its management team.
 
EXPANDING PRODUCT SUITE
 
China Biopharma primarily focuses on human vaccines for contagious diseases ranging in severity from mild respiratory diseases caused by the flu to severe, chronic diseases affecting niche populations. The Company owns the exclusive long-term rights to two award-winning vaccines for epidemic hemorrhagic fever (EHF) and influenza, which have created CBPC’s strong market reputation throughout China.
 
Commercial Vaccine Products
 
Flu (Influenza)  - 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.
 
INDUSTRY CATALYSTS
 
Rising Domestic Demand: China's overall population exceeds 1.3 billion, about one-fifth of the world's population. As China becomes one of the world’s largest economies, domestic demand for high-quality biopharmaceutical products has been dramatically on the rise. Ten years ago, only a few thousands flu shots were administered; by 2005, this number skyrocketed to approximately 20 million flu shots. This upward growth trend is likely to continue for many years to come.
 
In the last few years, China’s move toward capitalism, entry into the World Trade Organization and governmental increases in reimbursement for preventative medicine has created an influx of local biopharmaceutical companies. Many of these companies, however, have limited manufacturing capacity and suffer from a lack of market recognition and access to capital to expand their products. China Biopharma is leading the biopharmaceutical’s trend toward consolidation in China. By leveraging its manufacturing, intellectual property, distribution network and management team, China Biopharma offers smaller, domestic companies the opportunity to gain new efficiencies, markets and products to increase global market share.
 
United States Market Penetration: New strains of the influenza virus are constantly emerging. Beset by fears of a possible bird-flu pandemic, Congress recently approved $3.8 billion for flu-pandemic preparation, most of it earmarked for buying vaccines and medicines. In November 2005, the United States and China issued a Joint Initiative on Avian Influenza, which affirms a commitment to “stopping the spread of emerging infectious diseases, including the highly pathogenic H5N1 strain of avian influenza. Together we seek to expand efforts to prepare for, prevent and respond to a potential human influenza pandemic.” China Biopharma has already partnered with a U.S. vaccine developer to attack the next generation of the flu. China Biopharma will provide clinical studies and file for SFDA registration, retaining exclusive rights to the immunization, in China.
 
Multifold Growth Strategy
 
China Biopharma has several key value drivers in place to enhance shareholder value. The Company’s JV partner recently completed a state-of-the-art production facility that is one of the largest and advanced human-vaccine production facilities in China. The facility is designed as the nation's main vaccine production base within the region. China Biopharma operates the only countrywide vaccine distribution platform in China and has established an efficient vaccine development platform for late-stage clinical studies and vaccine registrations. If an outbreak of general influenza or the deadly H5N1 virus were to occur, China Biopharma’s facility would serve as a key production and distribution center for vaccines by order of the Chinese government.
 
With its management team, technology base, and strong market share in China, the Company is expertly positioned to capitalize on a biopharmaceutical industry ripe for consolidation. China Biopharma plans to acquire smaller-sized companies that offer complementary technologies and can enhance its product mix. Through international JV partnerships with industry leaders, CBPC plans to introduce breakthrough human-vaccine products to China, neighboring countries and other developed nations, including Europe and the United States. As a profitable company with impressive annual revenues, $10 million projected for 2006, China Biopharma seems to be a much-needed ‘shot in the arm’ for investors seeking an opportunity to maximize returns.
 
SEASONED LEADERSHIP
 
Peter Wang, Chairman & Chief Executive Officer, was Chief Executive Officer and Director of China Quantum Communications  (CQCL) since September 2000, and became Chairman and Chief Executive Officer of China Biopharma when the Company acquired CQCL in June 2004. Mr. Wang co-founded and successfully built UTStarcom (NASDAQ: UTSI) as well as several other technology and service ventures. Mr. Wang has more than 20 years of experience in the technology and services industry in China and has held management, operations, and research and development positions in companies such as AT&T Bell Labs and United Medical Group. Mr. Wang is also a director for several U.S.-listed public companies.
 
Dr. Jean-Denis Shu, MD, Chief Scientist, CEO of China Operations, is formerly Regional Director of Far East & North Pacific of Chiron Vaccines. Dr. Shu is a widely recognized as a vaccine expert in China, with extensive experiences in business start-ups and general management in vaccine industry, proven track record in medical and marketing management in France and China, and strong resource network. His past professional experiences also include General Delegate China for Aventis Pasteur, and Medical and Regulatory Affairs Manager for Pasteur Merieux Connaught, based in Lyon, France. Dr She was the author of several articles and books in vaccines.
 
Ya Li, Chief Financial Officer, is the Founder, Chairman and Chief Executive Officer of Global Villager Inc., which was acquired by StartecGlobal Communications Inc. in March 2000. Mr. Li joined the Company as Chief Operations Officer in 2001 and became Chief Financial Officer in 2004. From 1994 to 1999, Mr. Li worked in the information and financial industries for Bell Atlantic, Donaldson Lufkin and Jenrette, Lehman Brothers, and Morgan Stanley. Mr. Li has served as a Director for the Chinese Finance Society, Council on U.S.-China Affairs, and China Chamber of Commerce in the U.S. Mr. Li has a B.S. in engineering from the University of Science & Technology of China, an M.S. in computer science from Temple University, and graduated from the Management Program at the University of Pennsylvania's Wharton School of Business.
 
Charles Xue, Director, Charles Xue, Director, is a well-known entrepreneur and investor in China. He co-founded UTStarcom (NASDAQ: UTSI) with Peter Wang and served as Chairman of the company. Mr. Xue also founded and served as Chairman of PRCEDU.com and 8848.net, the largest online education company and leading e-commerce company in China. His expertise includes working on many projects in the technology, pharmaceutical, and real estate development sectors.

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