Sinobiopharma, Xianfeng enter agreement to manufacture, co-market Clindamycin and L-alanyl-L-glutamine

Sinobiopharma, Inc.Jul 21 2010

Sinobiopharma, Inc. (OTCBB:SNBP) ("Sinobiopharma" or, the "Company") is pleased to announce that it has signed an agreement with Anhui Xianfeng Pharmaceuticals Co., Ltd ("Xianfeng") to manufacture and co-market Clindamycin, an antibiotic, and L-alanyl-L-glutamine, a parenteral nutrition.

Sinobiopharma owns the drug certificates, drug registration approval documents and production technologies of both products. Under the terms of the agreement, Xianfeng will pay Sinobiopharma for access to the technologies and Sinobiopharma will pay Xianfeng for manufacturing the drugs. Due to the large manufacturing capability of Xianfeng, the production cost will be significantly reduced. The companies will jointly market the products. Financial details of the transactions have not been disclosed.

"Xianfeng has the GMP-certified facilities for the production of Clindamycin and L-alanyl-L-glutamine and is a strong marketing partner," said Dr. Lequn Lee Huang, Chairman and Chief Executive Officer of Sinobiopharma. "We expect production to start later this year and are confident this cooperation will help fuel the continued growth of Sinobiopharma."