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Sinobiomed Inc. (SOBM.OB): Chinese Wonder Drug-Maker?

Sinobiomed (SOBM) is a Chinese developer of genetically engineered recombinant protein drugs and vaccines. The company’s drugs treat diseases and ailments such as malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. Sinobiomed currently has 10 products: three on the market, four in clinical trials and three in research and development.

Sinobiomed, based in the bustling metropolis of Shanghai, could be on the forefront of the burgeoning Chinese biotechnology industry. China’s biotech industry is expected to continue its rapid expansion of 20 percent to 30 percent annually to $8.5 billion by 2010, helped by government contributions of $600 million annually. The Chinese pharmaceutical industry is expected to be the world’s 5th largest market by 2010.

Sinobiomed is considered a market leader in the area of recombinant protein drugs and recently acquired a distributor to facilitate a more expeditious sale of some its drugs. The company has one of China’s largest capacities for the manufacturing of recombinant bioproducts at an extremely low cost and its international alliances give the firm global advantages.

Sinobiomed also has a cosmetics and skin care business that is expected to generate sales of $3 million in the next year with profit margins of over 70 percent. The company is in talks with home shopping TV channels in China, India and other emerging markets to feature its skin care products.

The company said in August it received a $500,000 cash injection from Asian investment fund Accelera Ventures. Sinobiomed had total expenses of $1.8 million for the first three months of this year. Shares closed at 43 cents on Friday and have traded between 21 cents and $3.04 in the past 52 weeks.

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