Many investors may not be aware that there are two basic types of pharmaceutical products on the market. Chemical Pharmaceuticals are the types that people usually see created from basic chemical compounds. Biopharmaceuticals are created from proteins produced by living organisms that have medical or diagnostic uses. Generally, these are complex macromolecules derived from recombinant DNA technology, cell fusion, or processes involving genetic manipulation.
These studies are no longer the work of science fiction! Protein-based therapeutics is the newest class of compounds being developed in the drug industry, with an estimated 50 coming to market over the next few years, 140 already approved and an additional 500 in clinical trials. These proteins have been found to outperform their chemical peers when solving complex problems. After all, it is DNA that controls the body's actions- it's simply a matter of correcting the problems in the double-helix.
Recombinant protein drugs have three key advantages over traditional chemical pharmaceuticals: safety, cost and efficacy. Since the protein drugs are built from human components, they have a built in safety factor, while the process for developing these drugs is extremely quality controlled. The fact that they drugs are produced from human components also reduces the cost and increases the efficacy of the process. All in all, there are many key advantages from a financial prospective.
China is currently the largest player in the biopharmaceutical industry. Currently, the country produces eight of the world's top 10 genetically engineered drugs or vaccines. Revenues from biopharmaceuticals in China are expected to grow from $4.5 billion in 2005 at a rate of 20% to 30% annually over the next couple decades. The factors influencing this growth are a talented, but cheap, labor pool, the development of a FDA equivalent (SFDA), and the governments efforts to expand IP rights.
So, how can you benefit as an investor? One of the fastest growing and most innovative companies in this sector is a company called
Sinobiomed Inc. (OTC: SOBM). The company uses human proteins, or molecules that mimic or block them, to find new ways to treat disease. The process involves removing the DNA from one organism and placing it into a new organism that reproduces to make proteins of potential therapeutic value.
Drugs developed from this process can help solve many of the world's problems while also helping shareholders to profit handsomely. The potential uses for these proteins include: Hepatitis B&C, surgical bleeding, diabetic ulcers and burns, malaria, cancer, rheumatoid arthritis, blood cell regeneration following radio-chemotherapy for malignant tumors, acute liver disease, stroke, blood clots and thrombosis, acute pancreatitis and much more.
Investors looking for more information on this industry as well as Sinobiomed can check out their website at
Sinobiomed.com. The company's stock is listed on the OTC-BB exchange under the ticker symbol SOBM.
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Sinovac Biotech Ltd. (SVA)
China-Biotics Inc. (CHBT)
Renhuang Pharmaceuticals Inc. (RHGP)