Launched IPO with 12NTD a share on June 9th, Microbio is the first biotech company aim for botanical new drug discovery of its kind; besides of having unique technology in new drug development, Microbio also paly actively in healthy food market with promising result, and thus bring about profit to the company and consolidate its business foundation

After reported profit taking at the first stage, Microbio will march ahead to develop international business, especially in China's market. Besides, some of the new drug underdevelopment is about to the final stage. Microbio has a great potential to collaborate with international pharma players in either patent right authorization or merge and acquisition, the future of Microbio's development seems bright, as herbal drug starts to gain global acceptance.

Herbal drug marketing is on the verge of swift growth

The global new drug market is still based on chemical compound, a market of 500 billion USD with vast business. FDA regulation for drug approval is strict, not only time consuming but also costly. The average spending for new drug development cost around 500 to 800 million USD along with 10 to 15 years of R&D, a huge investment in resources which makes only few major pharma players can cope with it. A development bottleneck is seemed when R&D cost is on the rise risen but only handful of new drugs are pushing into the market with limited which might jeopardize the performance of these major pharmaceutical companies.

Inversely, FDA has officially announced "botanical drug regulation draft" on August 10th, 2000 hoping to untied the knot for TCM and accepted it as form of medicine in order to enter vast consumer market demand, and this has opened up a new space for botanical drug. Since botanical drug development requires less time and cost in compare with chemical compound with lesser toxicity and adverse effect, the futuristic market for botanical drug seem promising; with thousands of years of clinical experience practice with herbal drug, development of herbal medicine provides the opportunity of success for Chinese to undertake new drug development.

Currently there are as many as 200 new botanical drug are under IND stage with one botanical drug is approving for new drug application (NDA). In the near future, once the first botanical NDA approved by FDA, it will be a new breakthrough for global botanical new drug, up to this point, there will be more international big pharmas to lay their attention to botanical new drug through merge and acquisition of these botanical substance, and hence will be the biggest opportunity for Microbio.

Microbio file IND to FDA\

Established in year 2000, Microbio started with symbiotic fermentation which simulate human GIT biological eco environment, a technology derived and transferred from Japan. through biotransformation platform as core technology, and acquire many different new active ingredients as end product. Through all possible combination of microorganisms with different herbal medicine, different compounds are produced from different biotransformation, some of these end products have much greater activity when compare with lead compound with limited supply. This conversion platform has unlimited potential, once work along with a rapid screening system for substance identification can shorten the speed for new drug development, and lower R&D cost as well.

Microbio had installed the Lung-Tan factory at the following year after company establishment, with amazing speed to acquire GMP verification, and in the same year her new drug "MicrSoy-20" filed phase III study submitted to Taiwan's DOH as adjuvant for cancer therapy, currently undertaking clinical study at Veteran Hospital. MicrSoy-20's indication focused on improvement patient's condition such as fatigue and loose of appetite. Microbio will fill MicrSoy-20 IND under FDA, once FDA approves it, this product's market value will be up to multi millions, and return profit is many folds.

Besides of MS-20, there are many new drugs in the discovery pipeline aim particularly for cardiovascular disease, colorectal cancer, improvement for iron deficiency anemia for indication, apart from these new drug, MS-Complex is also planning for IND submission under FDA. Though it is laborious work and time consuming for new drug development, once a new drug is developed, it will bring a fortune to the company, and this is the charisma behind the curtain of new drug development.

Deployment for channel distribution, bring forth the company into profit taking

Besides of devoted in botanical new drug development, Micobio also apply her symbiotic fermentation platform to 5 healthy food product series, includes anerobic symbiotic fermentation in health care, bio-health ODM series, loose weight with ease series, Lee Herbs series, and active nutritious product series. Among these five, Lee herbs herbal series has developed over 1000 chain stores in TCM in short period less than one year. Besides, for the ODM business, Microbio also provide service to Cosmed for Young series, WeiChuan for nutrition supplement and energy boost, supplying purified bean extract product to Rotho Japan, and collaborate with WeiChuan biotech for beauty product "Charming Q10 Drink", all have levitate company's gross margin going upward. Form year 2005's annual income of 200 million NTD, Microbio has an increase of sales by 205%, with gross of 1.91 million NTD with EPS 0.03 NTD; and this year, Microbio's 1st quarter earning calculated 73 million NTD, gross up to 7 million NTD with EPS 0.11NTD, all have indicated that Microbio is on the track of full potential.

Looking ahead, Microbio will continue to strengthen her advantage in TCM chain stores, and expecting to achieve 1500 spot of chain store. For "Fromme" vigor health product, there will be 200 chain stores to join. Moreover, Microbio has aimed the vast market in mainland China with 3000 chain stores to be established as expected, also a new factory installed in Shanghai is ready which is four times bigger in size than Taiwan's factory to back up the production , and channel distribution for full market growth in China's channel distribution.

New drug with explosive potential, Long term investment is expecting

Overview of Microbio business operation, our company is on rapid growth stage of botanical drug market with excellent niche in business operation and holding explosive potential for new drug development. Taking advantage from her ODM business and through channel distribution in healthy good, this profitable business modle has greatly decrease the risk for new drug developing, thus lay up a solid foundation in business operation holds higher benefit space than any other new drug developing companies in investment evaluation.

Soon after MS-20 has filled IND under FDA for phase II study, once the study outcome is promising, Microbio will start to deal with international big pharmas for further collaboration, and hopefully things will be much clearer by year 2007 as we are all expecting. As for bean fermentation series, ODM service, Lee Herb series and self-brand products keep pushing up, and estimated annual sales of 352 million NTD, gross of 60 million of NTD, expected 0.83 EPS are expected for this year of 2006. with 12 NTD as stock price, EPS ratio is not high, after evaluated new drug R&D with long term explosive potential, long term investment is worthile.