COPIAGUE, N.Y., July 21, 1999 -- American Biogenetic Sciences,
Inc. (ABS) (Nasdaq: MABXA) announced today that it has concluded an agreement with the Chinese Academy of Medical Sciences (CAMS), Institute of Medicinal Plant Development (IMPLAD), and Beijing Union Medical & Pharmaceutical General Corporation, to market and sell traditional Chinese medicines worldwide. Sales for herbal medicines on a worldwide basis, of which Chinese traditional medicine is the fastest growing segment are expected to reach $6.6 billion in retail sales by 2003, with a growth rate of over 20%.
Under the terms of the presently announced agreement, ABS will have the opportunity to select herbal products and components from IMPLAD's vast array of traditional Chinese medicine products, components, and extracts for sale worldwide. In a unique quality certification process, ABS or its licensees will be permitted to utilize the Chinese Academy of Medical Sciences Seal indicating quality compliance for all medicines produced under the agreement - including the acquisition of seeds, the growth of herbs, and their harvesting and processing, all in accordance with the Good Agricultural Practices Standards. Companies that wish to discuss potential collaborations, licenses, or joint ventures call John S. North, President and CEO, at the Company.
Professor Denian Ba, M.D., Ph.D., President of both the Chinese Academy of Medical Sciences and of the Peking Union Medical College, said, “We are delighted to continue our collaboration with Alfred J. Roach, a trusted friend of many years. An important aspect of this collaboration is the double blind clinical studies we have been doing at our institution for a number of years. Therefore we will be able to provide a unique selection of Chinese Traditional Medicine from a Chinese source with assurance of quality and scientific backing .”
Mr. Alfred J. Roach, Chairman - ABS, commented on the signing, “We believe that this agreement will enable us to bring together the best of traditional Chinese and Western clinical medicine in a marketing package of intense interest to the global consumer. This unique agreement from seed to sale, under the supervision of CAMS is the outcome of over six years of meticulous collaboration with Professor Denian Ba and his colleagues. It positions ABS to be at the forefront of the most important pharmaceutical and pharmacological trends of recent decades. We are already in discussions with strategic partners who wish to bring these specially certified products to consumers over the Internet, as well as through traditional retail channels.”
This is the second agreement involving CAMS and ABS to be announced in the past week. In the earlier announcement, ABS stated that it was sharing its antigen-free monoclonal antibody-producing mouse technology with the Institute of Laboratory Animal Science - Chinese Academy of Medical Science in establishing its first presence outside of the U.S. In turn, the Institute is sharing with ABS its expertise on transgenic mice and providing know-how for the cost-effective production of humanized monoclonal antibodies. This market has been conservatively estimated at $1.7 billion by the year 2000.
American Biogenetic Sciences, based in Copiague, New York, researches and develops diagnostic tests for cardiac conditions and infectious diseases, as well as new treatments for neurological disorders including epilepsy, migraine, mania, Parkinson's and Alzheimer's disease. ABS also seeks out new technologies and conducts research and development throughout its Global Scientific Network, in the U.S., Europe, Israel, Russia and China.
Statements in this release that are not strictly historical are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and should be considered as subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated. For further details and a discussion of these risks and uncertainties, see the Company's Securities and Exchange Commission filings, including its annual report or Form 10-K.