ShangPharma achieves initial milestones for two oncology projects

Aug 11 2011

ShangPharma Corporation (NYSE: SHP) ("ShangPharma" or the "Company"), a leading China-based pharmaceutical and biotechnology research and development outsourcing company, today announced that it has achieved the initial milestones for two multi-staged projects in its biologics division, which portends strong growth for this segment in 2011.

The initial milestones were achieved for two oncology projects that are under development for a major U.S.-based pharmaceutical company. ShangPharma launched the projects at the beginning of this year and reached these milestones earlier than anticipated. As a result, the Company is advancing into the second phase of development ahead of schedule. ShangPharma is also conducting another multi-stage project in immunology for the same client, and expects to reach the initial milestone in the near-term.

Over the past year, ShangPharma has greatly enhanced its technological platforms in biologics research, allowing for faster delivery of high quality R&D work. Currently, it possesses a complete platform for the preclinical development of therapeutic antibodies that can support early-stage target validation through the delivery of potential drug candidates. These broadened service offerings have resulted in a significant increase in its biologics division's pipeline for additional projects that are expected to start in the near-term. The Company is gaining wider acceptance due to its ability to perform integrated programs and it expects to enter into additional contracts with new customers including a top 20 global pharmaceutical company, a U.S.-based biotechnology company and a large domestic Chinese pharmaceutical company, during the second half of 2011. The Company also plans to have close to 100 employees in the biologics division by the end of 2011.  

Michael Xin Hui, founder and Chief Executive Officer of ShangPharma, commented, "We are pleased by our enhanced speed and quality in the delivery of the first milestones for these projects, which demonstrates our ability to execute at the same high level of quality services. We are committed to expanding the biologics segment of our business through our partnerships with the world's most respected pharmaceutical and biotechnology companies for the development of novel biological therapeutics."