China Biologic Products ($CBPO) said its subsidiary, Guizhou Taibang Biological Products, has signed a deal with Xinjiang Deyuan Bioengineering to source 500 tons of raw plasma over the next three years, the company said in a news release.
The plasma will be used to produce albumin and IVIG products. China Biologic said it expects products made from this deal will hit the market beginning in 2016.
Funding for the deal comes from a loan of $47 million from China Biologic's subsidiary to Xinjiang that is secured by a 58.02% equity interest.
This is the second time the companies have worked together, and China Bio officials said they have "substantially processed" the initial 143 tons of albumin sourced under the first April 2015 pact.
The latest deal will also allow Xinjiang to restart plasma collection operations at its existing collection stations, which have been shut down for a year. It will also allow the company to upgrade its facilities.
Beijing-based China Biologic manufactures plasma-based products for sale mainly in China through its majority-owned subsidiaries, Shandong Taibang Biological Products and Guizhou Taibang Biological Products. The company also has an equity investment in Xi'an Huitian Blood Products.
- here's the release