China Biologic Products, Inc. (NASDAQ:CBPO) Q4 2018 Earnings Conference Call - Final Transcript

Mar 07, 2019 • 07:30 am ET


China Biologic Products, Inc. (NASDAQ:CBPO) Q4 2018 Earnings Conference Call - Final Transcript


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Good day, and welcome to the China Biologic Products Holdings, Inc. 2018 Fourth Quarter Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Sam Martin from the Foote Group. Please go ahead.

Samuel Martin

Thank you, operator. Hello, everyone, and thank you for joining us on today's call. China Biologic announced its fourth quarter and fiscal year 2018 financial results on of March 6th, 2019, after the market close. An earnings release is now available on the Company's website.

Today, you will hear from China Biologic's CEO, Dr. Bing Li, who will present recent developments of the Company. Mr. Ming Yin, Senior Vice President of China Biologic, will then give a detailed account of the Company's financial results. China Biologic's CFO, Mr. Ming Yang, will be available during the Q&A session, following the prepared remarks.

Before we proceed, I would like to remind you of our Safe Harbor statement. Our conference call may include forward-looking statements made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in our forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct.

Information about the risks associated with investing in China Biologic is included in our filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The Company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law.

The Company will also discuss non-GAAP measures, which are more thoroughly explained and reconciled to the most comparable measures reported under Generally Accepted Accounting Principles in the Company's earnings release and filings with the SEC. You are reminded that such non-GAAP measures should not be viewed in isolation or as an alternative to the equivalent GAAP measures and that non-GAAP measures are not uniformly defined by all companies, including those in the biopharmaceutical industry.

Now, I'm pleased to present Dr. Bing Li, CEO of China Biologic.

Bing Li

Thanks, Sam. Hello everyone online and welcome to China Biologic's fourth quarter and fiscal year 2018 conference call. As China's plasma industry continues to adapt to a changing regulatory environment and intensified competition, China Biologic delivered results for the fourth quarter in line with our previously revised guidance.

And looking ahead, first of all, we anticipate the regulatory policy headwinds will continue to be challenging in the next -- in the near future. Besides enforcing a cap on the drug expense as percentage of total medical costs, limiting prescription for the high-cost drugs and establishing adjuvant drug lists, relevant authorities may issue more healthcare policy to control our medical spending, which could impact our