PacificGMP and Pacific Biopharma Group (PBG) have signed a definitive merger agreement and will develop a cGMP biologics CMO in Taizhou, China. At approximately 200,000 sq. ft., the new CMO, called China Quantitative Biomedicine (CQB), will be one of the largest single-use biomanufacturing facilities in the U.S. or China, according to a company statement. Construction of the facility in Taizhou is expected to be completed in August 2008 with internal construction and equipment installation expected to be completed by the end of 2008.

Under conditions of the merger agreement, PacificGMP will receive funds to expand its operation in San Diego and assist in the development of the Taizhou facility and preparations for FDA and EMEA audits. The new facility is a showcase laboratory and part of a new biopharmaceutical park called China Medical City (CMC), located two-and-a-half hours outside of Shanghai in Jiangsu Province. The facility will be modeled after PacificGMP's San Diego facility, which utilizes single-use technology throughout the biomanufacturing process.

"We believe a significant opportunity exists for global leadership in single-use contract manufacturing services," said Gary Pierce, chief business officer of PacificGMP and newly appointed chief operating officer of PBG. "PacificGMP brings know how and experience in single-use contract manufacturing and PBG brings management and operational know-how and experiences in both the U.S. and China, as well as significant investment expansion capital."

"We look forward to contributing to the development of a state-of-the-art biomanufacturing facility in China to address the growing demand for contract manufacturing services and the rise of the Asian market for protein therapeutics," added Mr. Pierce. "This marks an important development in our organization that will benefit our customers by allowing us to expand the breadth of cost-effective quality services in San Diego and give our customers the option of eventual overseas manufacturing."