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Cellular Biomedicine Group Inc (CBMG) Expands GMP Capacity For The Growing Chinese Market

By Pablo Erbar

Cellular Biomedicine Group Inc (NASDAQ:CBMG) is a developer of proprietary cell therapies for the treatment of cancer and other degenerative diseases, which operates in China. The biomedicine firm has been continuously expanding its immuno-oncology and stem cell projects, thanks to the large demand for new treatments in the Chinese market.

In a recent interview with Small Cap Nation, Bizuo (Tony) Liu, who was appointed Chief Executive Officer in February 2016, enthusiastically announced the expansion of CBMG’s GMP facilities and presented his vision for the company going forward.

The new facility, located in the Shanghai Zhangjang High-Tech Park, will allow the company to produce enough CAR-T Therapies to treat up to 10,000 patients per year, exceeding the capacity of other leading biotech firms in China and abroad. Cellular Biomedicine Group Inc (NASDAQ:CBMG) currently operates three GMP facilities in China, located in Shanghai, Beijing, and Wuxi. These facilities meet international standards and have been certified by the China Food and Drug Administration (CFDA) and authorized accreditation agencies.

Judging by the large capacity of the new GMP facility, the demand for cancer treatments is undergoing some changes. Yet how big is the market really and how much could it grow?

As indicated by CBMG’s CEO, the number of cancer patients in China is growing at an alarming rate of approximately 4.5 to 5 million new patients per year. Mr. Liu believes this to be a huge problem and clarified: “putting [it] simply, in 1 minute we’re talking about 8 new cancer patients.”

Large facilities such as CBMG’s are a step in the right direction, yet there is still further room to grow in terms of capacity. In the areas of lymphoma and leukemia alone, the company treats 4,000 patients per year and is still barely scratching the surface in terms of demand.

As explained by its Chief Executive Officer, Cellular Biomedicine Group Inc (NASDAQ:CBMG) is focused mainly on the Chinese market, yet most of its scientists obtained their education and experience in the U.S. The former Corporate Vice President at Alibaba Group Holding Ltd (NYSE:BABA), Mr. Liu envisions a bright future for CBMG, as he aims to make it “the best in its class in China.” For the time being, CBMG is focused on expanding its capacity in order to carry out clinical trials, which will eventually make the jump from R&D to manufacturing much easier.

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Disclosure: Pablo Erbar holds no interest in any of the securities of entities mentioned above.