BEIJING, Oct. 25, 2022 (GLOBE NEWSWIRE) — Shineco, Inc. (“Shineco” or the “Company”; NASDAQ:SISI), a producer and marketer of Chinese herbal medicines, organic agricultural products and other biotech products , announced that on October 21, 2022, the Company, through its wholly owned subsidiary, Shineco Life Science Research Co., Ltd. (“Shineco Life Science”), has entered into a share purchase agreement (the “Agreement”) to acquire 51% of the issued stake of Changzhou Biowin Pharmaceutical Co., Ltd. (“CBP”), a Chinese biotechnology company engaged in the research and development of in vitro diagnostic (“R&D”) products and the manufacture of high-tech biomedical products. The total amount of this transaction exceeds US$10 million, to be paid in cash and common shares of the Company. This acquisition is a key move in the company’s business strategy to enter the point-of-care testing (“POCT”) industry.
POCT is part of in vitro diagnostics (“IVD”) and detection approach that uses portable diagnostic devices and additional test reagents to perform the test at the patient’s point of care and produce a rapid result. COVID-19 and Monkeypox detection reagents are two examples of POCTs, which provide fast, simple, effective and affordable detection methods and can be widely adopted in the rapidly growing market. In recent years, the compound growth rate of the POCT market has reached 26%. In 2021, the market share of IVD was US$117 billion globally, and POCT ranked first in terms of market size, accounting for 29%.
As a pioneer in the POCT industry, CBP focuses on the R&D, production and sale of innovative rapid diagnostic products and related medical devices for the most common diseases. Dr. Marvin Liu, Founder and Chairman of CBP, received his medical degree from Peking Union Medical College, China’s most prestigious medical school, and completed his postgraduate training at Dartmouth College in the United States. expert in China’s biomedical industry. Under his leadership, CBP has developed 16 categories of 55 products in the field of rapid diagnosis in just a few years, and established an ISO 13485 certified manufacturing plant and quality control system for related products, as well as production platforms. following POCT-related technological forms: colloidal gold immunoassay, fluorescence immunoassay and nucleic acid detection by loop-mediated isothermal amplification (LAMP). CBP has obtained 33 in vitro diagnostic reagent registration certificates, 21 EU CE certifications, and 8 products that have completed R&D and are in the process of product registration, covering cardiovascular disease, infectious disease, diabetes, digestive diseases and other areas. Among them, CBP’s COVID-19 and monkeypox virus detection reagents have been registered in the EU, and US FDA’s EUA authorization is in the process of being applied. Advanced technology innovation is CBP’s business strategy and pursuit of development. So far, CBP has 38 granted patents and pending patents, and among these patented technologies, 6 home tests, 5 fluorescent tests and 1 medical device have been developed. All products with high market potential in the world are designed for clinical diagnosis and rapid detection of the most common diseases. Currently, CBP’s products are sold well in Germany, Spain, Italy, Thailand, Japan, China and other countries. Sales from countries other than China accounted for more than 70% of total sales. In 2021, CBP’s revenue increased 119% over last year and is expected to continue to increase based on current market demand and order demand.
The POCT market in Europe and the United States and other countries has developed rapidly and maintained a high growth rate due to the resurgence of COVID-19. POCT is widely used in relatively mature markets such as Europe, USA and Japan. Recently, many countries have been promoting home self-testing products due to the growing demand for COVID-19 testing. The demand for using POCT products has changed and shown a self-testing trend, and we expect the market volume to be significantly higher than expected. Personal healthcare has also been increasingly important in China to meet the growing demands of a health-conscious and aging population. The company’s current cooperation with CBP is expected to capitalize on recurring COVID-19 outbreaks to expand rapid test products to market.
China has a huge market with a large population base, rapid economic growth and an increasingly aging population. Furthermore, individuals’ willingness to undergo physical examinations is increasing rapidly in China with rising household incomes and increased health awareness. The Company plans to seize growth opportunities in the Chinese market through cooperation with CBP.
Dr. Marvin Liu, Founder and Chairman of CBP, said, “I am very happy to cooperate with a powerful and professional listed company with a global outlook such as Shineco. CBP has made several breakthroughs in areas related to POCT products. The cooperation with Shineco will provide us with financial support and global marketing resources and will definitely speed up our product development, registration and manufacturing process, especially in three of our immediately patent-protected products, including the 5-minute heart test and the COVID-19 multi-sample antigen test, and Monkeypox virus antigen test. We expect the registration process to be completed early next year and our products to be released in China and around the world as soon as possible. The 5-minute cardiac test will be the first product in this field to meet the demand of the 10-minute requirement by the US and international AMI guideline, and improve the prognosis of acute myocardial infarction. is expected to become a leading acute myocardial infarction rapid test product and share the global rapid myocardial infarction test market of over US$3.5 billion. We believe that our multi-sample COVID-19 test is capable of improving the efficiency of clinical detection, reducing the “false negative rate” of the antigen test compared to current products on the market, and making the results of More accurate detection by combining four samples of nasal fluid, saliva, sputum and throat mucus for a single test. We believe our Monkeypox antigen test is fast, accurate and easy to use, and should improve detection efficiency and provide an effective tool to contain the immediate outbreak of monkeypox. We believe that our cooperation will be very valuable to Shineco and the community.
Ms. Jennifer Zhan, CEO of Shineco, said, “This acquisition is a key step in Shineco’s value chain upgrade strategy, marking the company’s official entry into the POCT market. Cooperation with CBP has formed a closed loop upstream and downstream business chain of Shineco. CBP’s strong market position will also bring benefits to society. We highly value CBP’s R&D strengths and strong ability to bring products to market in a short period of time, which are the key to a modern and innovative business. Additionally, the affordability, effectiveness and simplicity of POCT products will allow patients to detect serious diseases earlier and increase the rate of cure while minimizing the cost of treatment. »
Incorporated in Delaware in August 1997 and based in Beijing, China, Shineco is a holding company. Using modern engineering technologies and biotechnology, Shineco produces, among other products, Chinese herbal medicines, organic agricultural products and specialty textiles. For more information about Shineco, please visit www.biosisi.com.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by words such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “plans”, “anticipates”. ”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluate” or similar words. Statements that contain these words should be read carefully because they address future expectations, contain projections of the future operating results of the Company or our the the company’s financial condition or disclose other forward-looking information. Examples of forward-looking statements include, among others, the issuance of the 3,260,000 common shares, POCT could be widely adopted in the fast-growing market, we expect CBP’s revenue to continue to grow based on current order amounts, we expect market space to be significantly higher than expected, we expect to obtain the registration certificate in early 2023, we expect to enter the global myocardial infarction rapid detection market and WWe believe that our cooperation will generate significant value. You are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from historical results or from those indicated by such forward-looking statements due to a variety of factors, including, but not limited to, risks and uncertainties associated with its ability to raise additional funds, its ability to maintain and grow its business, the variability of its operating results, its ability to maintain and strengthen its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets in its product portfolio and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, impact of the COVID-19 pandemic, dependence on key personnel, ability to attract, hire and retain personnel possessing the technical skills and experience necessary to meet the requirements of its customers and its ability to protect its intellectual property. Shineco encourages you to consider other factors that may affect its future results in its registration statement and other filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are based on current expectations and Shineco assumes no obligation to update these forward-looking statements, except as required by applicable rules and regulations.
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