China Biologic Products, Inc. (NASDAQ:CBPO) Q4 2018 Earnings Conference Call - Final Transcript
Mar 07, 2019 • 07:30 am ET
For example, the central government may implement a series of indicators for performance appraisals at hospital level to better monitor the efficacy of treatments and the efficiency of prescriptions, which could possibly slow down the volume growth of our major products. On the price side, the wider implementation of centralized procurement might result in further price cuts at hospital level, if plasma products are included the relevant procurement lists.
Despite those challenges, China Biologic made meaningful progress in improving our sales and marketing capability during the fourth quarter, including hiring new industry talents, further broadening our sales channel coverage, and reducing inventory level.
Through our focus on optimize our distribution channels, IVIG inventory at Guizhou subsidiary decreased by over 40% from September 30, 2018 to December 31, 2018. For key to the fulfillment of those efforts is onboarding of our new Chief Business Officer, Dr. Homer He. Dr. He has more than 30 years' experience of management in global healthcare industry and has previously played various senior commercial roles in China and multinational pharmaceutical companies. And also, he is very familiar with vaccine and medical device companies, including recently served as Vice President and General Manager at Danaher Dental Platform, so -- where he was in charge of most of their Great China business. We look forward to benefiting from Dr. He's experience -- expertise in those areas as we continue to strengthen China Biologic's commercial capability and implement stronger marketing planning and execution.
In terms of R&D, we're also significantly increasing our effort to support expanding product pipelines in both plasma and medical device business, in particular, the clinical development of the key late-stage products as well those highlights, Guizhou subsidiary obtained approval from NMPA, former CFDA, for clinical trials of its new generation IVIG. We expect to be able to complete those clinical trials over the next three (ph) years.
Furthermore, the Board recently approved a capital expansion plan to build a replacement fractionation facility in Guizhou, which is expected to be commercially launched in 2022. The new state-of-the-art facility will more than double Guizhou Taibang's manufacturing capacity, enabling us to enhance our production efficiency and quality and better meet the increasing market demand for plasma therapeutics in China.
Looking to the year ahead, we will continue to focus on strengthening China Biologic's commercial capability and expanding our sales penetration at hospital level, as well as managing the inventory and hiring key industry talent. We will also further increase our effort to educate Chinese doctors about the benefits of IVIG, PCCs and other coagulation factor products in treating patients across a wide range of clinical indications. We will also increase our effort in product development to ensure the timely launch of our key pipeline product. As part of our core strategy, we will continue to assess suitable acquisition targets that will better position China Biologic for long-term growth.
You may have seen in the release that the Board of Directors on March 4th, 2019 approved extension to