Sembiosys Genetics Inc. SBIYF

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[Horn1369]

SemBioSys and Tasly Pharmaceutical Joint Venture Receives Chinese Government Approvals and Business License

New Joint Venture Focused on Multi-Million Dollar Short-Term Revenue Opportunities

CALGARY, Feb. 2, 2012 /CNW/ - SemBioSys Genetics Inc. (TSX:SBS), today announced that its product and platform development collaboration agreement (the "Agreement") with Tasly Pharmaceutical Co., Ltd ("Tasly") of Tianjin, China, and its wholly owned subsidiary Tasly US have received all necessary Chinese (People's Republic of China and local Chinese Government) approvals and the business license for the newly formed Company based in Tianjin, China, Tasly-SemBioSys Bio-Pharmaceutical, Technology Co., Ltd., to commercialize near, medium and long-term healthy living, nutritional, and pharmaceutical products utilizing Tasly and SemBioSys' plant-based technology and expertise.

"Today's announcement is part of a larger strategic plan for SemBioSys and Tasly to collaborate on a number of fronts," said James Szarko, President and CEO of SemBioSys. "With this long approval process now completed we will rapidly develop and commercialize a number of exciting new products into Tasly's well established distribution channels," he concluded.

The new Company is structured as a Sino-Foreign Equity Joint Venture (the "Joint Venture"), and will develop and commercialize products for China and the world. Development work on the first products and product programs is already under way. Select products and programs that are under evaluation or under development with a range of timelines are listed below:

Near Term

Research and develop a new generation of Modern traditional Chinese medicine (TCM) products utilizing oilbodies to develop and further enhance TCM products. The total international TCM market is estimated to be US$20 billion and Tasly's revenues are approximately US$1 billion growing at in excess of 20% per annum.

Develop a line of functional food and beverages based on oilbodies that result from SemBioSys' patented oil seed processing platform. The oil and proteins are produced in a continuous cold system that does not denature the oil and proteins, resulting in higher quality products with greater market value than those currently produced using standard heat and hexane extraction methods. The global functional food and beverage market is estimated to exceed US$130 billion by 2015. Tasly recently entered this exciting new market and believes its current distribution provides huge upside growth potential in China based on the results of its initial products.

Mid Term

Continue development of SemBioSys' protein feed additive for the global aquaculture markets. China's market accounts for approximately 70% of the global aquaculture market, which is estimated to be US$86 billion annually.

Research and develop modified oils for nutritional health.

Long Term

Continue development of plant produced insulin for China and the rest of world. Initial program would explore growing requirements and optimizing seed yield for Chinese agriculture.

[CurlyMick]

Insulin is first and foremost for medical apps correct? The company's site does not talk about a phase III testing and approval procedure that I can see except what's at the bottom of my post. It was undated.   Do you know approximately how long ago the company filed the application they mention in the following blurb?   I ask because they presented to JP Morgan

[VIKINGSTORM]

I phoned the Calgary office yesterday with limited success because during the day I work in a very marginal cell phone area. However, I did get that first and foremost will be the introduction of traditional Chinese medicine and food and beverage products into the Chinese market.  News will be out as they make progress on that front.  I had thought that insulin was one of the long term

[CurlyMick]

Thanks Viking.   I read their PR this way. Tasly has the right to do what they want and will guide the company in any way they can as they work together; yet, SBS is not restricted to working only with Tasly. SBS can sell their proprietary processes to anyone. Begs the question though, why give 70% away. I speculate that the answer is because the Chinese market is ripe for the picking and can

[Horn1369]

The important news here is that they are going to monetize their patents and health products and their technology much much sooner than if they were on their own. there is also the possibility of a reverse take over as Jharbaugh suggested in his blog. SBS-1000 and Apo AI Milano will come down the pipe much sooner than if they were on their own (they are still in pre clinical). This

[Horn1369]

They are still in pre clinical according to the email reply I got from Rick Pierce. "Hi, I would like to know if you have applied for FDA approval for Apo AI milano and the SBS-1000 (insulin) and at what stage they are."   "No - product is still in preclinical development. I am in China in business until the 23rd and happy to discuss by phone upon my return." Kind regards

[CurlyMick]

Oh, sorry for my ignorance. I thought that their results at phase I and II were already posted. That must have been pre-pre-clinical trials?   Aha...I just went back and read it more closely...it was in the UK they did that. That logically would mean that maybe they are closer to getting approved in the Euro zone? I don't expect an answer to that rhetorical question.   Now I see the