China Pharma Outsourcing Selected News Compile - April 2009

JZMed, Inc.

China Pharma Outsourcing News Compile v

China Pharma Outsourcing Selected News Compile First Quarter of 2009

JZMed, Inc. April, 2009

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Table of Contents No.

Date

News Title

Page No.

1

January 6

Leading Researchers Establish FORMA Therapeutics to Integrate Transformative Biology and Chemistry to Address Challenging Targets and Develop Breakthrough Oncology Drugs

4

2

January 6

WuXi adopts H-Cube for drug discovery

5

3

January 9

e-Therapeutics to Offer Computational Biotech Services from Nanjing Office

6

4

January 15

Hutchison MediPharma Options Program to J&J

6

5

January 15

Asian pack machine demand a boon US and EU industry

7

6

January 21

Cogenics Partners to Bring Genomic Services to China

8

7

January 22

CEE Could Gain from Asia’s Reputation for Fakes

8

8

January 27

Pharmaceutical Sector Expected To Fast Grow In 10 Years

9

9

January 27

Rem Gets into Bed with PsyPharma for Sleep Studies

10

10

January 28

China's Anti-Cancer Drug Market Forecast Exceeded $3.5 Billion In 2007

11

Basilea Pharmaceutica Plans to Expand Its Worldwide Organization add More Than 100 Positions

12

Orexo and NovaMed Pharmaceuticals (Shanghai, China) Signed A Licensing and Distribution Agreement

12

11

12

January 27

January 27

13

February 5

Step Forward for Vortex Resources and YaSheng Group Merger

12

14

February 5

USP Announces New Standards for Heparin and Glycerin

13

15

February 11

Zhangjiang Park and CRO Sundia MediTech Form Incubator

13

16

February 12

Bayer Schering to Open Beijing R&D Center

13

17

February 12

OriGene Secures $6.5M to Set Up mAb Manufacturing Facility

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14

18

February 12

Charles River Cuts Preclinical Jobs in Global Gloom

14

19

February 16

Research and Markets: China Pharma Outsourcing Market Forecast to 2015

15

20

February 18

HUYA Joins Forces with the Beijing Institute of Materia Medica

16

21

February 19

Study Raises Questions about Sending Trials Out of U.S.

17

22

February 25

Frontage Deal Expands Service Offering in China

19

23

February 26

Novartis sets $627 M Revenue Goal for China in 2009

19

24

March 3

Immtech Signs MOU with Beijing Pharmaceutical Group

20

25

March 5

Sinovac Receives GMP Certification for Its New Filling And Packaging Production Facility

20

26

March 9

Tigermed Aims Big with MacroStat Alliance

21

27

March 12

China's Shanghai Ruijin Chooses the Mobetron for Advanced Cancer Care

21

28

March 22

SGS opens new micro test lab in China

22

29

March 25

AstraZeneca and BioDuro Expand Discovery Contract

23

30

March 25

WuXi PharmaTech Announces Fourth-Quarter and Full-Year 2008 Results

24

SAFC launches service to secure supply chain

25

31

March 30

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China Pharma Outsourcing Selected News Compile First Quarter of 2009 1. Leading Researchers Establish FORMA Therapeutics To Integrate Transformative Biology And Chemistry To Address Challenging Targets And Develop Breakthrough Oncology Drugs January 6, 2009 FORMA Therapeutics announced today its debut as an integrated, global drug discovery company. The Company was founded by leading researchers from the Broad Institute of Harvard and MIT to integrate important new advances in biology and chemistry to unlock essential oncology targets that have been elusive to the best scientists in the industry. FORMA has received initial equity and non-dilutive funding of $25 million from multiple sources including Novartis Option Fund and Bio*One Capital of Singapore. Forma’s co-founders from the Broad Institute include Stuart Schreiber, Ph.D. Director of Chemical Biology and a Howard Hughes Medical Institute investigator; Todd Golub, M.D., Director of the Cancer Program, and an investigator at the Dana-Farber Cancer Institute and Howard Hughes Medical Institute; and Michael Foley, Ph.D., Director of the Broad’s Chemical Biology Platform. Additional members of the FORMA founding team include: Steven Tregay, Ph.D., President and CEO, formerly Managing Director, Novartis Option Fund; and Nikolai Kley, Ph.D., Vice President of Biology and Head of Drug Discovery, formerly Vice President and Head of Research, GPC Biotech. Genetic studies of human cancers have provided important insights into oncogenic pathways and their associated drug targets. However, many of such high value drug targets have posed significant challenges to traditional drug discovery approaches. “Over the next five years, genomic medicine efforts such as the NIH’s Cancer Genome Atlas Project (TCGA), will elucidate the genomes of many tumor types and fundamentally change our understanding of cancer drug targets,” said Dr. Foley. “I believe that the new tools and capabilities coming out of chemical biology research will enable the discovery and development of innovative drugs against novel, high value targets and FORMA is uniquely positioned to capture this opportunity.” “The strength of FORMA’s scientific platform and the caliber of scientists and industry executives that have come together to build this company make it a highly promising investment opportunity in oncology drug discovery,” commented Reinhard Ambros, Head of the Novartis Venture Funds. “I believe the company’s integrated drug discovery ________________________________________________________________________ Page 4 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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approach positions FORMA for success in areas that are considered ‘holy grails’ of oncology drug discovery such as interfering with protein-protein interactions or functional activity of transcription factors.” FORMA is uniquely positioned through its unprecedented combination of technological capabilities and oncology expertise to access such novel target space and to develop a new generation of breakthrough oncology drugs. Some of the key features of FORMA’s discovery capabilities include: • Versatile cell-based screening platform which allows the screening of discrete targets in cells and quantitative genome/proteome-wide profiling and target identification. • Accessing new chemical space through structure guided drug discovery (SGDD) approaches leveraging proprietary computational and structural biology combined with our integrated chemistry platform which incorporates Diversity Orientated Synthesis (DOS). DOS combines the high stereochemical and structural diversity found in natural products with traditional combinatorial chemistry techniques. This approach has been proven to work for challenging targets and will allow the rapid optimization of lead therapeutic candidates. “Our goal is to develop a robust and sustainable pipeline of truly innovative drugs with qualified mechanisms of action,” said Dr. Tregay, FORMA’s CEO. “Our internal drug discovery efforts are focused on targets of high value and interest in oncology; however, we intend to leverage our platform through collaborations in other therapeutic areas.” FORMA is a global company headquartered in Cambridge, MA with research operations in Connecticut, Singapore, and Beijing. The FORMA Board of Directors includes: Steven Tregay, Michael Foley, Alexis Borisy, Founder and CEO of CombinatoRx, Reinhard Ambros and Simon Campbell, Ph.D. Former SVP, Worldwide Discovery and Medicinal R&D Europe, Pfizer. FORMA Therapeutics is integrating transformative biology and chemistry to unlock the best targets and pathways that genomics medicine has revealed. FORMA builds on the vision of its academic founders: Stuart Schreiber, Todd Golub and Michael Foley, each of the Broad Institute of Harvard and MIT. FORMA leverages its innovative drug discovery platform to address challenging targets and develop a robust internal pipeline of breakthrough oncology drugs. FORMA is a global company headquartered in Cambridge, MA with additional research operations in Connecticut, Singapore and Beijing.www.formatherapeutics.com

2. WuXi adopts H-Cube for drug discovery January 6, 2009

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WuXi AppTec is to use ThalesNano’s H-Cube for laboratory-based hydrogenation, which the CRO believes offers advantages in drug discovery over traditional batch processes. By using the H-Cube WuXi joins illustrious company, with ThalesNano claiming that the world’s top 20 pharmaceutical companies all use the technology. The H-Cube is a bench-top standalone device that uses continuous-flow microchemistry with hydrogen needed for the reaction generated in-situ and on demand. Since the necessary hydrogen is produced in the H-Cube no external storage is required which reduces the space the system takes up. Reactions take place on disposable catalyst cartridges, which are modeled after high performance liquid chromatography (HPLC) systems. ThalesNano claims that in comparison with traditional techniques the H-Cube is safer, faster, more cost-efficient and gives increased yields. Shuhui Chen, chief scientific officer of WuXi AppTec, said: "We are very pleased for the employment of H-Cube, as Hydrogenation in flow for drug discovery is significantly a more productive and safer approach than traditional batch-based technique. We are looking forward to working with ThalesNano as we move to larger scale in the future." The larger scale model that Chen refers to is the H-Cube Midi that increases the capacity up to a maximum of 500g a day using the same technology as its smaller sibling. Consequently WuXi should be able to scale-up its production runs and maintain the same results.

3. e-Therapeutics to Offer Computational Biotech Services from Nanjing Office January 9, 2009 e-Therapeutics, a British software firm offering a computational biotechnology platform, has opened an office in Nanjing that will allow the company to collaborate with biopharmas in China. The company’s software models the interactions of a given compound, predicting the degree to which it will bind with the body’s proteins. It can be used in drug discovery programs to predict efficacy as well as unwanted interactions. In September 2008, e-Therapeutics announced a partnership with Nanjing KeyGen Biotech.

4. Hutchison MediPharma Options Program to J&J January 15, 2009

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Hutchison MediPharma Limited and Ortho-McNeil-Janssen Pharmaceuticals, Inc., a division of Johnson & Johnson have formed collaboration, taking advantage of MediPharma’s work on a novel inflammation/immunology target. MediPharma will continue its discovery and development activities through clinical proof-of-concept, unless OMJPI exercises an option to take over the development. If that happens, OMJPI will have exclusive rights to develop and commercialize the compounds

5. Asian pack machine demand a boon US and EU industry January 15, 2009 The market for packaging machinery is set to grow 5 per cent a year and be worth $40bn (€30.3bn) by 2012, driven partly by a hike in demand for drug products in “pharmerging” economies, according to a new industry report. The study predicts that global economic output will improve; enabling higher consumer spending that in turn will drive greater manufacturing activity and demand for more efficient packaging machines and processes. Pharmaceutical manufacturing hotbed China is expected to see the largest growth in demand for packaging machines with the market set to expand by over $3.3bn through to 2012, toppling the US from its position as global leader. Additionally, other developing economies like India and Russia, and to a lesser extent lower volume markets like Ukraine, Indonesia, Malaysia, Saudi Arabia, Mexico and Turkey, will need more packaging machines as standards of healthcare and consumer spending continue to increase. The report also suggests that demand for drug packaging capacity in developed economics will increase, albeit at a slower pace than in Asia’s booming manufacturing hubs. Growth in the west will be driven by an aging population and a greater reliance on single-use disposable packaging. However, while demand for machines may shift east over the next five years, over 66 per cent of all the packaging units sold worldwide will be made by manufacturing firms based in Western Europe, the US and Japan. US High visibility packaging market also set for gains Another report released this week suggested that the US market for high-visibility packaging, including pharmaceutical blister packs, will be worth $8.5bn by 2012, equivalent to a growth rate of 4 per cent a year.

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Blister packaging will generate around $2.2bn in sales by 2012, a compound annual growth rate of 4.4 per cent, with the pharmaceutical and healthcare sector under going the greatest increase in demand for this type of product. While drug packaging firms are set to be major beneficiaries, industrial plastic resin makers may be the overall winners. The report predicts that creation of an estimated 34bn individual packages by 2012 will require nearly 1.2bn pounds of plastic.

6. Cogenics Partners to Bring Genomic Services to China January 21, 2009 Cogenics has entered into a partnership with SinoGenoMax to bring its clinical genotyping services to the expanding Chinese market. By partnering with an established force in the Chinese genomics market Cogenics is hoping to gain access to clients beyond its primary markets in the US and Europe. SinoGenoMax provides genomic services to local and international universities, research institutes and pharmaceutical companies. The partnership should give Cogenics access to these clients and expand the range of services that the companies can offer. Michael Lutz, Global Manager of Cogenics, said: “The extensive pharmaceutical and biotechnology infrastructure and large number of clinical trials conducted in China make this an increasingly important market for clinical genotyping services. “Our partnership with SinoGenoMax provides us with an established presence in China and an experienced international service partner who operates with similar platforms and high quality standards, thus expanding Cogenics’ offering to our growing global pharmaceutical customer base.” Cogenics claims its clients include the top 20 pharmaceutical companies operating in the US and Europe. Companies in China will now have greater access to these services, which include next generation sequencing, gene expression and clinical and non-clinical genotyping. In addition Cogenics can provide biomanufacturing support, nucleic acid extraction and biobanking for research and regulated environments. Cogenics entry into China suggests it believes that the number of clinical trials conducted in the country will continue to grow, driving demand for related services. 7. CEE Could Gain from Asia’s Reputation for Fakes January 22, 2009 ________________________________________________________________________ Page 8 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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A new report suggests the large numbers of fake drugs produced in China could drive CMO customers away and see Central and Eastern Europe (CEE) emerge as a contract manufacturing hotbed. The main thrust of the report is that while Europe has lost out to Asia much in contract active pharmaceutical (API) production due to higher costs and stricter regulations, the lack of guidelines in China and India, and susceptibility to rogue producers, will shift the balance back. In particular, it predicts that Central and Eastern European (CEE) will see significant gains. The research, which was carried out by Polish market research firm PMR, quotes a European Fine Chemicals Group (EFCG) study claiming around 5,000 rogue manufacturers are operating in China. This argument is in keeping with the litany of high profile scares about APIs and ingredients sourced in the country that have dominated the news in recent years. However, PMR also cites data from the European Chemicals Industry Council (ECIC) that, in Europe, counterfeiters in Russia and the Ukraine are responsible for a high proportion of fakes and argues that as a result only certain CEE countries will gain if confidence in the Asian CMO sector does fall away. Of these the Czech Republic emerges as the front runner. The report argues that the country’s drug industry is one of the most developed in the region, particularly in terms of APIs. The study also suggests that the Czech biotech industry is developing rapidly and providing a platform for specialization, although it concedes that many of the companies currently operating in this market are focusing on the contract production of nutritional supplements. In addition the authors suggest that Poland, which like the Czech Republic is a member of the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Cooperation Scheme, may be attractive to drug firm’s seeking an alternative to China.

8. Pharmaceutical Sector Expected To Fast Grow In 10 Years January 27, 2009 Insiders estimated that the new medical reform plan would bring about much positive influence on the Chinese pharmaceutical industry in the following ten years, and the listed pharmaceuticals producers with high growth potential are expected to allure more investors

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On January 21, 2008, the State Council, China's cabinet, passed the final medical system reform scheme, and up to CNY 850 billion is planned to be pumped into the domestic healthcare and medical treatment sector from 2009 to 2010. The Chinese central government plans to come up with the basic medical insurance system across the country before 2011 and thus more citizens can lighten their burdens of medical expenses. In the upcoming three years, China will commit itself to lifting the participation ratios of the basic medical insurance system for urban employees and the new rural cooperative medical scheme (NCMS) to over 90%, respectively. In order to further improve the medical service and to standardize drug prices, the state is brewing the start-up of the pilot public hospital reform projects. SOURCE: Chinese pharmaceutical industry

9. Rem Gets into Bed with PsyPharma for Sleep Studies January 26, 2009 Two US companies specializing in sleep disorders - Rem Medical and PsyPharma Global, have pooled their resources to offer research services to the pharmaceutical industry. Rem Medical’s primary business is in the running of sleep disorder clinics. Now, with the acquisition of a clinical site in Tucson, Arizona, operated by PsyPharma, it will be able to provide Phase II-IV trial services across a wide range of sleep and related psychiatric disorders. PsyPharma specializes in Phase II-IV trials of sleep, psychiatry and neurology disorders, with operations in both the US and China. Insomnia treatments are the main product category among sleep disorders and represent a multibillion dollar market in their own right, albeit one that is mature and heading for imminent generalization. But sleep disorders span a broad range of indications, including restless legs syndrome and obstructive sleep apnoea, which are the focus of considerable research by the drug development sector. OSA is one of the fastest growing sectors in the sleep disorder treatment market, with up to 18 million patients in the US 85 per cent of who are estimated to be undiagnosed. Rem Medical said in a statement that through the acquisition it has “retained an exceptional investigative, clinical and administrative team with a track record of quality trial activity.”

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The Arizona unit is led by Derek Loewy, the principal investigator in over thirty clinical trials since completing his sleep medicine fellowship training at Stanford University in 2001. Prior to PsyPharma, Dr Loewy was the director of the insomnia program at the Sleep Clinic of San Francisco

10. China's Anti-Cancer Drug Market Forecast Exceeded $3.5 B In 2007 January 28, 2009 According to the Chinese Ministry of Health (MOH), there are approximately 2.13 million patients with newly diagnosed tumors (both benign and malignant) each year, of which 1.06 million are newly diagnosed cancer patients. Cancer has become the leading cause of mortality in both urban and rural China. According to national statistics data, the cancer mortality rate of urban Chinese residents is currently 140.47 per 100,000 (21.82% of all urban deaths) and the cancer mortality rate of rural Chinese residents was 111.57 per 100,000 (16.50% of all rural deaths). In the Chinese hospital drug market, sales of anti-cancer drugs have risen steadily in recent years. During 2003-2005, the annual compound growth rate of anti-cancer drug sales was approximately 24.5%. In 2006, due to the national campaign on anticommercial bribery as well as other related government policies, the market growth of anti-cancer drugs slowed down to approximately 11.1%; however, the growth of the anticancer drug market regained momentum and reached an annual growth rate of approximately 22.2% in 2007. The total market size for anti-cancer drugs in 2007 was 25.5 billion RMB (3.6 billion USD). Major topics covered in this report include: Summary of Global Markets of Anti-Cancer Drugs, Summary of Anti-Cancer Drugs in China, Market Analysis of China's AntiCancer Drugs, List of Brand Names, Generic Names of Anti-Cancer Drugs and their Corresponding Manufacturers in China, Packaging and Pricing of Anti-Cancer Drugs in China, Anti-Cancer Drugs on the National Healthcare Insurance Coverage list, Regulatory and Government Policies for Anti-Cancer Drugs in China, Current AntiCancer Drugs in China, and Current Anti-Cancer Drug Development in China. Companies covered include: Jiangsu Hansen Pharmaceutical Co., Ltd.(Hansen Pharma), Jiangsu Hengrui Medicine Co., Ltd., Novartis, Pfizer, Roche, sanofi-aventis, Sichuan Diao Jiuhong Group, Pharmaceutical Co, AstraZeneca, Bristol-Myers Squibb, Eli Lilly & Co., Guizhou Baiqiang, Pharmaceutical Co., Ltd., Hainan Zhonghe Pharmaceutical Co., Ltd, Jinling Pharmaceutical Co. Ltd., Livzon Pharmaceutical Group Inc., Nanjing Kanghai Pharmaceutical Co., Ltd., Nanjing Sike Pharmaceutical Co., Ltd., Qilu Pharmaceutical Co., Ltd., SciClone Pharmaceuticals Italy S.R.L., Shenzhen Wanle Pharmaceutical Co., Ltd., and Zhejiang Hisun Pharmaceutical Co., Ltd.

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11. Basilea Pharmaceutica Plans to Expand Its Worldwide Organization and Add More Than 100 Positions January 27 Basilea Pharmaceutica plans to expand its worldwide organization and add more than 100 positions in order to focus on “Toctino” (alitretinoin) and “Zeftera/Zevtera” (ceftobiprole medocaril), two drugs it says are high-priority programs, according to a press release. The company will reduce approximately 30 positions at its headquarters that are mainly involved in research programs of lower priority, and it will create 17 new positions in Switzerland and a total of approximately 100 new positions worldwide. 12. Orexo and NovaMed Pharmaceuticals (Shanghai, China) Signed A Licensing and Distribution Agreement January 27 Orexo and NovaMed Pharmaceuticals (Shanghai, China) signed a licensing and distribution agreement that grants NovaMed rights to seek approval to market Orexo’s product for treatment of cancer pain, “Abstral” (rapinyl), in China. The terms of the agreement includes an upfront payment, regulatory milestones and sales milestones. The total value of the deal, which includes an upfront payment and milestones, is $4.75 million.

13. Step Forward for Vortex Resources and YaSheng Group Merger February 5 2009 In preparation for a possible merger with Vortex Resources, YaSheng Group has released its annual audited 2006 and 2007 financial statements. The companies previously entered into a term sheet to develop a logistics center and eco-trade cooperation zone in California. YaSheng is engaged in agriculture, chemicals, and biotechnology and is based in the Peoples Republic of China. The term sheet also gives YaSheng the option to merge other assets into Vortex, a company that acquires and develops undervalued assets. Vortex currently has operations in West Texas and Beverly Hills, CA. By releasing its audited financial statements, the company provides both parties greater flexibility to close the merger. The transactions described in the term sheet are subject to the drafting and negotiation of a final definitive agreement, performing due diligence, as well as board approval from Vortex. This does not guarantee Vortex success with the proposed merger.

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14. USP Announces New Standards for Heparin and Glycerin February 5, 2009 Rockville, MD (Feb. 4)—The US Pharmacopeias (USP) Convention has announced new standards for heparin and glycerin. USP revised the heparin standard at the request of the US Food and Drug Administration, in response to adulterated heparin product with oversulfated chondroitin, which resulted in the deaths of 200 people. Glycerin, a sweetener and binding agent, has been adulterated in the past by dilution with diethylene glycol. The new standards for glycerin become official in May 2009, and the new standards for heparin become official in August 2009 after a public comment period. All manufacturers of these products are required to comply with the standards. The US Food and Drug Administration requested a new glycerin standard that establishes limits for diethylene glycol and revises other “high risk” articles that have similar applications. FDA also requested a revised heparin monograph to detect the presence of over-sulfated chondroitin sulfate. In addition, the modernized heparin monograph aims to provide improved analytical methods, improved measurement of heparin activity, and the development of associated reference standards (i.e., heparin identity, heparin potency, oversulfated chondroitin sulfate, and dermatan sulfate). “These new USP quality standards provide better assurance of the quality of marketed products by using appropriate and modern analytical methods,” says Moheb Nasr, PhD, director of the Office of New Drug Quality Assessment (ONDQA), at FDA's Center for Drug Evaluation and Research (CDER), in a USP press release. “This provides a considerable safeguard for citizens of the United States and the world by helping to prevent fraudulent suppliers from adding components that in the past have eluded existing identity tests due to similar properties. The new standards represent a significant improvement to the safety nets that keep substandard drugs from reaching the marketplace. FDA is pleased to have worked together with USP on this effort.”

15. Zhangjiang Park and CRO Sundia MediTech Form Incubator February 11, 2009 Shanghai Zhangjiang (Group) Co., which operates the Zhangjiang Hi-Tech Park, has joined with CRO Sundia MediTech Company to expand the concept of a CRO. The two companies have formed a platform that combines Intellectual Property, CRO and Venture Capital services in one group, a biopharma incubator that includes its own CRO. The goal is take a young biopharma from original discovery into clinical trials. At the same time, the incubator will help draw the best young biopharmas to Zhangjiang Park.

16. Bayer Schering to Open Beijing R&D Center

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February 12, 2009 Germany's Bayer said today it will invest $129 million in a new global research and development center in Beijing over the next five years. China is the third largest market worldwide for the Bayer group, and it will become the third country besides Germany and the U.S. to host such a center for its Bayer Schering Pharma unit. Bayer also said it is currently in advanced discussions with Tsinghua University on entering into a strategic partnership to pursue research collaborations for the discovery of new disease-related targets. 17. OriGene Secures $6.5M to Set Up mAb Manufacturing Facility in China February 12 2009 OriGene Technologies raised $6.5 million, which allows it to complete the acquisition of Shenzhen P&A Biotech, a manufacturer and provider of mAbs. With the establishment of this technology center, OriGene will be able to develop genome-wide mAbs. With OriGene's China mAb production capacity and genome-wide resources, the company believes that it can produce several thousand high quality mAbs per year. This genome-wide mAb production capacity is available to all commercial and academic partners. Over the last 10 years, OriGene developed the capacity to produce human full-length proteins from human cells. It has spent the last two years developing a genome wide collection of antigen standards and over 100,000 tissue samples for high-quality antibody validation.

18. Charles River Cuts Preclinical Jobs in Global Gloom February 12, 2009 Charles River Laboratories will reduce its workforce by 3 per cent, close its preclinical facility in Arkansas, US and sell off its Phase I trial site in Edinburgh, Scotland as part of a cost reduction program. The firm added that it will reduce headcount at its plant in Shewsbury, Massachusetts, and said the decision to restructure its preclinical services (PCS) division “is reflective of [its] global client base and the current demand.” Charles River explained that divestiture of the Edinburgh site, for which it may have already found a buyer according to the Boston Globe, is a response to the decision by many of its preclinical clients to shift their trial program to India and China due to increased regulatory demands in Europe. ________________________________________________________________________ Page 14 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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The latest announcement follows on from a poor set of Q4 results that saw revenue from its PCS business fall 8 per cent to $158.6m (€123m) on a decline in demand it linked to pharma industry “restructuring and pipeline reprioritization”. For 2008 the PCS unit performed slightly better, with revenues climbing 4.6 per cent to $683.6m, although margins declined to 1.6 per cent on costs linked to new preclinical sites in Shanghai, China and Nevada. Company CEO James Foster added that the firm’s annual results “reflect the impact of the global economic crisis and the challenges our pharmaceutical and biotechnology clients are facing, especially in the PCS segment.” He added that while the firm considers the economic gloom is temporary, it is using the period of uncertainty as a window to streamline operations and reduce operating costs by 20 per cent this year. 19. Research and Markets: China Pharma Outsourcing Market Forecast to 2015 Mon Feb 16, 2009 It has been widely accepted that China is now the primary choice of outsourcing destination for drug companies around the world. In the past eight years Chinese pharmaceutical outsourcing industry has grown in an average annual rate of 48%. Starting with chemistry service only, a complete industrial structure with all service elements now starts shaping. The industry's growth is also accelerated by the influx of a large number of multinational service providers whose entrance greatly up-lifted the service capability of this Chinese industry. In addition, increasing numbers of traditional Chinese pharmaceutical companies and R&D-oriented Chinese biotechnology companies also join in the service. At present, about 250 professional service providers, 50 multinational service providers, 150 traditional Chinese pharmaceutical companies and 20 Chinese biotechnology companies have formed a joint force in today's China pharma outsourcing industry. Together, they are serving an ever enlarging body of outsourcing companies from all over the world. The industry has thus realized the service revenue of more than $1.4 B. Nearly a decade development has significantly uplifted the industry and competition as well. How this Chinese industry would likely develop in the future has become a common concern to many professionals in all related industries. The current financial crisis also puts the future development of this industry into an uncertain path. Would you like to know how the financial crisis affects this Chinese industry in both near term and long term? What will the industry look like in five to ten years? What are the driving forces that keep this industry still fast growing? ________________________________________________________________________ Page 15 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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Will China still have cost effective advantage in five to ten years? How does labor cost likely grow in next few years? How to compare it with that in other countries? "China Pharma Outsourcing Market By 2105" is designed to address these issues and to answer these questions. It is by far the most comprehensive report about Chinese pharma outsourcing industry and market. It investigated in depth the development pattern of service capability and market size of this Chinese industry and first time displayed to the world a complete picture of China pharma outsourcing industry. In addition, with in-depth analysis of more than 50 case studies, the report also first time revealed how drug companies around the world conduct outsourcing in China and what outsourcing models are popularly pursued. More importantly, the report examined in depth both the drivers and resistors of future development of this Chinese industry. It is also the first time that a clear picture of future growth and development of this Chinese industry is depicted. The report is a must-read book to all professionals in the industries of pharmaceutical, biotechnology, financial investment and outsourcing service that are interested in pharma outsourcing in China. It is also a valuable reference book to drug regulatory agencies and other government agencies involved in strategic planning of development of pharmaceutical industry in their own countries. Key Topics Covered: * Chapter 1: China's Advantages in Pharma Outsourcing * Chapter 2. Current Market Size, Service Capability and Existing Issues * Chapter 3. From Popular Outsourcing Models To Future Development * Chapter 4. Impact of Financial Crisis: Market Development Forecasts for 2009 and 2010 * Chapter 5. Future Development: Years beyond 2010 * Summary 20. HUYA Joins Forces with the Beijing Institute of Materia Medica February 18 2009 HUYA Bioscience is partnering with the Beijing Institute of Materia Medica (BIMM) on preclinical safety and efficacy activities as well as clinical trial protocols. The agreement also provides HUYA with the right of first review and negotiation for the licensing and development of certain new compounds owned or controlled by BIMM. This right includes drugs for cardiology, endocrinology, oncology, immunology, hematology, neuroscience, and infectious diseases.

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BIMM comprises the Chinese Academy of Medical Sciences and Peking Union Medical College. It concentrates on discovering and developing treatments by isolating natural remedies. “For BIMM,” says Xiaoling Wang, M.D., Ph.D., BIMM director, “our partnership with HUYA signifies an opportunity to bring our expertise and our efforts in pharmaceutical development to the Western market.” HUYA CEO, Mireille Gingras, Ph.D., adds that, “HUYA is highly experienced and uniquely positioned in China to leverage the emerging biotech industry through strong collaborations. This is the culmination of years of relationship-building and exchange of knowledge between HUYA and BIMM.”

21. Study Raises Questions about Sending Trials Out of U.S. February 19, 2009 Major U.S. drug companies are increasingly performing clinical trials in developing countries, raising serious concerns about the efficacy, ethics and economics of drug development, according to a study in the current issue of the New England Journal of Medicine. "There are powerful forces luring clinical trials overseas, including the lower cost of doing business and access to larger study populations," says Seth Glickman, M.D., the study's lead author and an assistant professor of emergency medicine at the University of North Carolina at Chapel Hill School of Medicine. "We cannot afford to trade lower costs of drug development for drugs that may be less safe and less effective," Glickman says. Since 2002, the number of Food and Drug Administration investigators based outside the United States grew 15 percent per year, while those in the U.S. dropped by more than 5 percent, the study found. Glickman and his co-authors reviewed government registries of Phase III clinical trials and studies of industry-sponsored trials in 2007, and 300 articles reporting clinical trial results appearing in the New England Journal of Medicine, the Journal of the American Medical Association and Lancet in 1995 and 2005. According to the researchers, one-third of these trials from the 20 largest pharmaceutical companies in 2007 were being conducted outside the U.S., and a majority of all trial sites were abroad. They also found that from 1995 to 2005, the number of clinical trial sites overseas doubled, while the number in the U.S. and Western Europe decreased. One obvious cause for this move is economic. The price per case for a clinical trial at a top-rated medical center in India is about $2,000; in the U.S., it would cost 10-times as much. In 2000, the average cost to develop one drug in the U.S. was $802 million, with ________________________________________________________________________ Page 17 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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most of the expense resulting from time costs. Countries with fewer regulations can move trials along faster. But with lower costs comes less stringent scientific and ethical standards, and the U.S. regulatory system, chiefly the FDA, is already strained. "This is outsourcing not only of jobs but of the way we test drugs to make sure they are safe and effective," says Charles Cairns, M.D., chairman of emergency medicine at UNC and a co-author of the study. "Across the globe there are different standards and no uniform approach to conducting clinical trials." Ethical concerns include the lack of trial oversight and review of study protocols, as well as the monetary lure of participating in trials, especially in low-income countries. Also, many of the drugs tested in developed countries are for conditions that are not primary health problems there; allergies or overactive bladder instead of tuberculosis or malaria which disproportionately affect these countries. Genetics and cultural and social factors also influence how drugs are metabolized. For instance, people of Asian decent have a genetic variance that decreases the efficacy of drugs like nitroglycerin. Many people in developing countries are also "drug naive," and have never taken medicine for depression or other chronic conditions. Their bodies would react differently to a drug than someone in a country like the United States who takes multiple medications and receives routine medical care. "It is conceivable that use of the same drug in both populations would produce markedly different results," Glickman says. The problems overseas are often rooted in the U.S. Higher labor costs, time-consuming bureaucracy and a lack of uniformity even in the U.S. regulatory system drives drug makers to look for places that are more conducive to running trials in a cost-effective manner, Cairns says. The solution lies in a multi-faceted approach to increase cooperation with countries overseas while improving the domestic environment and increasing accountability on the part of industry, says Glickman. "The U.S. Food and Drug Administration can be a leader globally in addressing these issues," says Cairns. "The FDA could be a nexus of insurers, providers, industry, patients; so that we could agree on minimal standards that can be transportable across countries." "This could almost be considered a State Department issue. Energy and global warming are security issues; this is a medical security issue that needs to be actively discussed." "Clearly, there is some benefit for everyone involved in clinical trials overseas," says Glickman. "But we need a robust research framework that will protect trial participants and ensure that clinical research is conducted to the highest scientific standards." ________________________________________________________________________ Page 18 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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22. Frontage Deal Expands Service Offering in China February 25, 2009 Expansion of Frontage’s collaboration with Beijing Second Pharmaceuticals will give it a new 1,800 sq m R&D centre and further increase its presence in China. The companies were already working together but this collaboration has now been expanded in an attempt to accelerate Beijing Pharma's entrance into the international generic drug market. In return for providing bioanalytical, pre-clinical, clinical and drug development services to Beijing Pharma Frontage will obtain the R&D centre and access to good manufacturing practice (GMP) compliant manufacturing capacity. This facility marks another milestone in Frontage’s expansion into China, which commenced three years ago. Since then Frontage has entered into numerous collaborations with Chinese pharmaceutical companies, including Beijing Pharma since 2007. Under the original arrangement Frontage helped Beijing Pharma with the design, renovation and commission of manufacturing facilities. This was done to ensure they were compliant with US Food and Drug Administration and International Conference on Harmonisation GMP requirements. Song Li, president and CEO of Frontage, said: "This partnership demonstrates our continued commitment to support the US, European and Chinese companies' development programs in generic drugs, and to help them gain access to international markets. “We are pleased that the investments we have made in our business over the last year are being recognized by our customers and partners." Over the next three to five years Beijing Pharma is hoping the collaboration will develop 12 abbreviated new drug applications (ANDA). These will be marketed in China, Europe and the US.

23. Novartis sets $627 M Revenue Goal for China in 2009 February 26, 2009 Swiss pharmaceutical giant Novartis International AG expects over RMB 4.29 billion ($627.46 million) in sales revenue from the Chinese market in 2009. In 2008 it made 3.3 ________________________________________________________________________ Page 19 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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billion RMB ($428 million) in China, up 29% from 2007 which was 2.56 billion RMB ($376 million). Globally, the company is hoping for a 5% increase in its top line. Novartis also said it plans to introduce six new drugs to China during 2009 and to increase its employee count by 20%.

24. Immtech Signs MOU with Beijing Pharmaceutical Group March 3, 2009 Immtech Pharmaceuticals signed a Memorandum of Understanding (MOU) declaring its interest in developing a strategic alliance with Beijing Pharmaceutical Group Co. Ltd. (BPGC). The MOU also confirms BPGC’s intention to consider a range of collaborative opportunities with Immtech. The alliance would give BPGC rights to develop drugs from Immtech’s library of compounds, which primarily target hepatitis C and malaria. No financial disclosures were made at this early stage.

25. Sinovac Receives GMP Certification For Its New Filling And Packaging Production Facility March 5, 2009 Sinovac Biotech Ltd. (NYSE Alternext US: SVA), a leading provider of vaccines in China, today announced that it has received the Good Manufacturing Practice (GMP) certification for its recently opened filling and packaging production facility. The certificate of compliance has a five-year term and was issued by the State Food and Drug Administration (SFDA) following a site inspection. The GMP certification provides for an overall annual production capacity of 20 million doses, with the capability to produce up to 40 million doses through reasonable scheduling of production activities. This production milestone ensures that Sinovac can fully meet increasing market demand and potential production increases for currently commercialized products, namely Healive, Bilive and Anflu. The filling and packaging production plant also has the capabilities to fill and package Panflu, the Company's pandemic influenza vaccine, in order to support China's prevention and control strategy against a potential outbreak of pandemic influenza. Further to existing commercialized products having obtained GMP certifications, the filling and packaging plant successfully obtained the GMP certification, which further recognizes Sinovac's implementation of high quality management of production process. Mr. Weidong Yin, Chairman, President and CEO, commented, "The receipt of the GMP certification and the operation of the state-of-the-art filling and packaging facility provide the foundation for the further development of Sinovac. We are well positioned to increase output to meet increasing market demand and ultimately achieve sales growth. More ________________________________________________________________________ Page 20 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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importantly, the expanded production capacity should enable Sinovac to supply greater amount of vaccines, which is in line with our mission to eliminate human diseases."

26. Tigermed Aims Big with MacroStat Alliance March 9, 2009 Tigermed is continuing with its plan of partnering to become the top Chinese CRO through an alliance with MacroStat to improve its range of statistical services, further broadening its business. The alliance covers the running of clinical trials, data management and statistical analysis, with Tigermed, a Chinese contract research organization (CRO), using MacroStat to improve its services in these areas. By enhancing its offering in these areas Tigermed believes it can improve drug development in China, providing services that meet international standards while streamlining clinical research and cutting R&D costs. In return MacroStat will receive an “asset injection”, with this additional capital being used to accelerate development of its biostatistic services and further penetration into the clinical trial market. Ye Xiaoping, CEO and founder of Tigermed, said: “The win-win cooperation between leading CROs with complementary advantages is conducive to constructing a higher level of CRO service chain and further updating full service capability, which also opens a fast track to the globalization of China CROs.” Under the terms of the deal, financial details of which have not been disclosed, three of Tigermed’s executives will take seats on MacroStat’s board. The deal forms part of Tigermed’s ambitious growth plans that target becoming the biggest CRO in China within 3 years, with a cash injection from Qiming Venture underpinning this “period of rapid expansion”. Strategic collaborations have been identified by Tigermed as an important way of achieving its growth targets, with last year’s deal with Russian and South Korean CROs being used to spread into new markets. 27. China's Shanghai Ruijin Chooses the Mobetron for Advanced Cancer Care March 12, 2009

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IntraOp Medical Corporation (OTCBB: IOPM), a provider of intraoperative electronbeam radiation therapy (IOERT) solutions for the treatment and eradication of cancer, announced today an order for its Mobetron device from the Shanghai Ruijin Hospital in Shanghai, China. IntraOp's Mobetron is a mobile technology that delivers IOERT to a tumor site during cancer surgery. The Mobetron enables radiation and surgical oncologists to pinpoint the optimal site for radiation and deliver an effective dose during the procedure. Since the Mobetron is a mobile, self-shielded device, doctors will be able to move the Mobetron among different operating rooms to more efficiently treat a greater number of patients. Shanghai Ruijin will use the Mobetron to treat many forms of cancer, including breast, colorectal, sarcoma, and lung cancers. This marks the fourth Mobetron installed in China. In the six months since installing the first Mobetron device and beginning treatments, oncologists in China have had notable success using IOERT for cancer therapy, inspiring other centers to follow suit. Two institutions in Beijing have been using the Mobetron since September of 2008 and have extremely high utilization rates, reflecting the Chinese doctors' commitment and enthusiasm for IOERT as an emerging standard-of-care for surgeries requiring tumor resection. Prof. King, director of the radiation Oncology Department, said, "The Mobetron will augment the surgical and radiotherapy department for Ruijin. This will allow the oncologists there to quickly and effectively treat a larger number of patients, while reducing tumor recurrences and saving lives." IntraOp CEO John Powers added, "We continue to be optimistic about the rapid adoption of the Mobetron technology and IOERT in China. This is the fourth order we've received in only 18 months. It is clear that IOERT is having an immediate impact on the delivery of radiation therapy in China."

28. SGS opens new micro test lab in China March 23, 2009 SGS Life Science Services opened a new microbiology testing laboratory in Shanghai, China to offer cGMP compliant API testing services for method development and validation. The 700 square meter laboratory, which employs 27 full time analytical staff, will offer local drug developers current good manufacturing (cGMP) practice standard microbiology, stability and endotoxin assessment services for active pharmaceutical ingredients (API), finished products and traditional Chinese medicines.

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The quality of APIs and drugs from China has become an increasing concern for patients and importers worldwide following a series of high profile contamination problems that emerged in recent year. While standards in China are beginning to improve as a result of efforts by both the Chinese Food and Drug Administration (SFDA) and other regulators, analytical testing capacity has not grown at the same rate as the manufacturing sector, creating demand for contract offerings like SGS’. Ulrich Markens, vice president and regional manager of SGS’ Chinese operations, explained that the firm had “received [an increasing number of] requests from several multinational companies for microbiology testing in a fully cGMP-compliant environment.” Markens added that: “Integrating microbiological testing broadens our service portfolio…in compliance with the increased scrutiny of pharmaceutical manufacturing in China by the US Food and Drug Administration (FDA).” The laboratory, which began offering contract analytical services in January 2006, is part of SGS’ integrated network of 14 cGMP-compliant testing facilities worldwide that the firm believes enhances the quality control operations of both its local and multinational pharmaceutical industry clients. SGS also said that the laboratory, which already holds a Chinese National Accreditation Board for Laboratories’ ISO 17025 certification, further expands its range of offerings in the country. The firm offers consultancy in regulatory affairs and the registration of medical products in both Hong Kong and China, third party facility inspection and auditing services and advises producers of import and export requirements.

29. AstraZeneca and BioDuro Expand Discovery Contract March 25, 2009 The Chinese unit of US contract drug discovery firm BioDuro says that AstraZeneca has expand its relationship with the firm to include the optimization of discovery research operations focused on drugs for respiratory and inflammatory disease. Under the updated contract, financial terms of which were not made public, BioDuro will provide integrated research services in the areas of chemistry, biology, ADME, and DMPK to help enhance AstraZeneca’s discovery program and shorten timelines.

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Lena Martensson, AstraZeneca’s director of strategic planning and business development explained that the new deal is based on the firm's previous success and excellent working relationship with BioDuro. Martensson said that: "After a successful collaboration involving discovery chemistry, ADMET, and DMPK, AstraZeneca has expanded its collaboration with BioDuro to leverage the strengths of its team to help develop new therapeutics." This positive opinion was echoed by BioDuro CEO John Oyler who said that the firm "is pleased to build upon this existing collaboration and work closely with the experienced team at AstraZeneca to develop new clinical compounds.” BioDuro has a team of 580 researches and technicians at its facility in the Chinese capital Beijing. It currently has a roster of 40 pharma and biotech clients that it claims include 10 of the top 12 worldwide. With Big Pharma increasingly cutting R&D budgets and in-house expertise being scaledback there is considerable scope for contract research organizations (CRO) to expand their businesses. BioDuro appears to have positioned itself well to take advantage of the burgeoning contract research market, with Frost & Sullivan predicting Asian CROs will be doing $2bn worth of business a year before 2010. 30. WuXi PharmaTech Announces Fourth-Quarter and Full-Year 2008 Results March 25, 2009 Key highlights: •

Total full-year 2008 net revenues: $261.8 M (including $8.3 M of net revenues from discontinued operations) and adjusted EBITDA: $72.2 M;

•

74% year-over-year net revenue growth from continuing operations in fourth quarter of 2008, 33% organic net revenue growth for China-based businesses;

•

87% year-over-year net revenue growth from continuing operations for full-year 2008, 45% organic net revenue growth for China-based businesses;

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Fourth quarter and full year 2008 net losses reflect non-cash impairment charges relating to continuing and discontinued AppTec operations;

•

Construction completed at Suzhou toxicology laboratory and expanded Jinshan manufacturing plant;

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•

Company targets 2009 net revenues of $265-$275 million, including 15-20% net revenue growth in China-based laboratory services;

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Key 2009 investments in laboratory services, toxicology, and manufacturing services expected to drive revenue growth in 2010 and beyond;

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Fourth-quarter 2008 net revenues from continuing operations increased 74% to $64.4 million compared to fourth-quarter 2007;

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AppTec contributed $15.1 million of net revenues in fourth-quarter 2008 and $57.7 million in full-year 2008;

•

Net revenues from Laboratory Services increased 99% to $57.4 million in fourthquarter 2008 and grew 100% to $205.0 million in full-year 2008, including increases of 47% to $42.3 million and 44% to $147.3 million in China-based Laboratory Services for fourth-quarter 2008 and full-year 2008, respectively;

•

Net revenues from Manufacturing Services decreased 15% to $7.0 million in fourth quarter 2008. Manufacturing Services net revenue increased 48% to $48.5 million for full-year 2008, driven by continued expansion of the breadth and depth of our customers and revenue from a single large project in the first half of 2008.

•

GAAP gross profit grew 27% to $20.3 million in fourth-quarter 2008 and 53% to $96.3 million for full-year 2008, driven by strong net revenue growth, continued healthy gross margins for our China-based Laboratory Services business.

•

GAAP gross margin was 31% and 38% for fourth-quarter and full-year 2008, respectively, versus 43% and 46% for fourth-quarter and full-year 2007, respectively.

31. SAFC launches service to secure supply chain March 30, 2009 SAFC has launched its Vendor Audit Services that are designed to increase clients’ confidence in the supply chain by providing traceability and quality confirmation of raw materials. The service has been set up to assist companies maintain standards when operating within a complex global supply chain, the dangers of which have become increasingly apparent in recent years. SAFC will operate the service as an extension of its in-house auditing, giving clients access to staff with compliance and regulatory experience that operate in locales around the globe. ________________________________________________________________________ Page 25 of 26 JZMed, Inc. (www.jzmedi.com) 4/1/2009

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Gilles Cottier, President of SAFC, said: "SAFC understands that ensuring the proper quality for raw materials that feed customer pipelines is vital to their success, and quality assurance has always been a top priority for SAFC-sourced raw materials. "This program leverages the high level of trust our customers have in SAFC's regulatory expertise and pioneers a much needed regulatory compliance service that can benefit our customers by providing them with an efficient and effective method to help them ensure that quality requirements are met for materials internationally sourced." SAFC believes that clients using the service will be able to perform more audits across a bigger geographic area and also achieve cost savings as a result of not having to expand their regulatory compliance team. Further savings can be realized by companies that are willing to allow SAFC to reuse their audit information for other customers.

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