TCM will adapt newest biotechnology. Microbio recently announced Lee Herbs health care series, formally advance into TCM pharmaceutical distribution, and generate a new wave in healthy food channel distribution.

Microbio launch Lee Herbs Series to force into TCM chain stores.

During BioTaiwan 2004, Microbio and The Biotechnology and Pharmaceutical Industries Program Office together held a session of "Vision and Strategy for TCM biotech product development" conference. Within the session, there are over 300 TCM market elite had come to join, such a activity can only be seen rarely.

CEO William Lu indicated, Microbio will mainly focused on Lee Herbs health series, latter half of this year; together to combined TCM stores with local botanical shops in order to construct a brand new channel for TCM health product.

CEO William Lu thought, many of the TCM shops are undergone transition period, if these shops can combined with biotech products, not only to modernized TCM practice with image renovation but also develop a new channel distribution for biotech companies. This is indeed a win-win strategy for both parties. In the future there will be two main sales forces for Microbio; one to focused on self brand distribution, the other will be ODM service for other brands

Botanical products become mainstream

Microbio is the first domestic company to acquire TCM new drug clinical study; besides of devoted in TCM new drug development, also apply company's patented anaerobic symbiotic fermentation to push into five product series. Includes anaerobic symbiotic fermentation health care series, bio healthcare ODM series, SSD (Simple Shape Design) series, Lee Herbs Healthcare Series, and Active Nutritious Series. Among all, Lee Herbs Healthcare Series is considered as Microbio's core development in the future. The TCM healthcare products are backup with clinical experiences and botanical essence; started from raw material selection, condensation to formulation development, all have been tested under strict no pesticide, no heavey metal residual quality control; and also scientific proven to be healthcare effective. According to statistics, global market for TCM business will reach to 36.9 billion USD in 2006, healthcare and food nourishment products are the most among all. CEO William Lu implies, going along with the concept of preventive medicine, TCM preventive measures is gradually accepted and appreciated by consumers; Lee Herbs Series is the new type of healthcare product derived from this hot trend.

Lee Herbs adopted from the name of ancient Chinese Ming Dynasty's Dr. Lee Shih Jeng, withholding the spirit of "merciful in heart and techniques", hoping to spread out the concept of traditional Chinese preventive medicine, said CEO William Lu.

In order to develop Lee Herbs product series, Microbio looks for help from former chairman of TCM association, Dr. Chang cheng Kuo specialized in both Chinese and Western medicine. Through Dr. Chang's expertise and experience in clinical practice, formulate each product according to their characteristics and attributes, then combined with modern science to fortified products effectiveness.

Traditional Chinese medicine business under metamorphosis

CEO Lu implies, Microbio has eye on TCM shop to build up TCM healthcare product sales channel to not only breakthrough current TCM product business channel, but also to look for ways to combined biotechnology with traditional Chinese medicine, as a way to modernized and reshape TCM business model.

According to statistics, there are as many as 4000 traditional Chinese medicine shop vary from size to size, many of them are running in family business as father pass to son. These second generation are facing a dilemma in which not to give up family own business lightly but also have to confront economic and market strikes with gradual loss of business from this new generation. Thus many of these young TCM shops owners are looking for ways to transform business model in order to survive, but still searching for answers.

Taking advantage from previous experience in trading and channel distribution, CEO William Lu figure it out that TCM products' main problems lies on distribution; many of the TCM shops do have stable consumers from their local region, if a network meshed and intertwined products with distribution, a nearly forgotten market can be disclosed. For this, Mr. Lu travel all over Taiwan, personally visited different herbal association and related institutions in order to understand the ecology of local Chinese medicine shops, and the result turned out to be fascinating with positive feedback which strengthen Mr. Lu's faith in herbal medicine business.

As for collaboration model, CEO William Lu indicated, Lee Herbs will take a totally different approach than "Shuen Tien Herbs" whose operation as in directly-managed store, but in franchising TCM shop distribution. The displacement of Lee Herbs Series will not replace what were already in side of each collaborated TCM stores, but to carefully reallocate in a well arrangement..

In the initial period, Microbio had locked on 400 local TCM stores, those are legally with good intention in operation are targeted customers, these customers later became members in chain store networking, backup by Lee Herbs product series, particularly aim for specific geographic location for 1 to 3 respective spots. Lee Herbs Series were officially launched in October.

Brand name factory ODM manufacturing

Microbio started from initial stage had focused on her won technology oriented platform, and also devoted in TCM new drug development. CEO William Lu expressed, due to the fact that Chinese new drug development required conducted on human clinical study for extensive time, this long road leading to success will not generate profit easily in such short period of time.

For this particular reason, besides of pursuing new drug development as a long term goal, self developed anaerobic symbiotic fermentation is also applied to her product series as well as in ODM/OEM services for other brand name companies.

The ODM/OEM service provided by Microbio is starting to build up good name among the healthcare industries. For example, in collaboration with Cosmed chain stores, Microbio provides OEM services to products like: Cordyceps sinensis, Lucid Ganoderma, Antrodia camphorate, chitosan

Microbio also collaborate with Chuen Chia, WeiChuan, I Chi Wei, Brands, assisting these companies in manufacturing, and planning for all kinds of healthcare series, currently

Besides, in order to increase production throughput, Microbio, is also eager in China's market, not only in land purchasing, but also designing a series of product for mainland's market, and sales distribution is already undertaken.

Microbio has already received official approval from ITRIS regarding Microbio's stock go public, and is proposing for OTC by next year. Whether Microbio will become a bright young star in biotechnology remains an issue to heed.

Anaerobic Symbiotic Fermentation Whether Microbio is able to push out new product or not, it all depends on company's own anaerobic symbiotic fermentation as key technology platform. The so-called anaerobic symbiotic is utilize host's body, lest good bacteria, beneficial strains live together in perfect harmony under anaerobic condition, just as a simulation of human intestinal environment. According to the healthcare point of view, intestine is considered a source for human immunity, which is related to intestinal flora's survival. More and adequate number of beneficial bacteria, better absorption, and so is body health and anti-aging effect. Today, many of the international big pharmas are also searching for answer for intestine simulation technology leading to new drug discovery, and to shorten the R&D time spend on finding. Currently, Microbio has signed up a collaboration agreement with Genome Center together lead to new drug discovery. Under ITRIS evaluation, over 95% of the outcome are nanorized, and proving to be GIT absorption compliance. The newly developed MS-20 from Microbio is the product adopted the concept of anaerobic symbiotic fermentation, aiming for cancer adjuvant therapy. It is now under phase III study conducted in Taipei VeteranHospital Cancer Treatment Center, and estimated to be ready by end of this year or next year MS-20 has also approved by US patent, a third US patent acquired after black bean and Astragalus fermentation. Microbio also prepared MS series into 10 ml drinks for anti-aging purpose. Dr. Sian Ming relied, besides of soybean fermentation extract, MBS-2 from black bean fermentation claimed to be arteriosclerosis effectiveness is on the way of animal study / pre-clinical study, follow by latter botanical new drug human study. MBS-2 under clinical study, proven to inhibit 15-LOX in relation with arteriosclerosis, not only to decrease triglyceride concentration in blood, but also lessen area for injury, proven to slow down arteriosclerosis.