PRC NHC Issues New Policy on Cord Blood Banks, Implementation Rules To Be Provided
HONG KONG, Dec. 6, 2019 /PRNewswire/ -- Global Cord Blood Corporation (NYSE: CO) (the "Company"), China's leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services, today reported that China's National Health Commission ("NHC") recently issued a new policy allowing the relevant Provincial Health Commissions ("PHCs") to approve cord blood bank licenses in 18 pilot Free Trade Zones ("FTZs") in China.
On November 29, 2019, the NHC announced its Notice Regarding the Issuance of Free Trade Zone "Separating Permits from Business Licenses" Healthcare Reform Implementation Plan* (the "New Policy"). According to the New Policy, PHCs will be responsible for approving cord blood bank establishments, granting cord blood bank licenses to applicants who satisfy all requirements, and organizing specialists and relevant technical departments to perform technical and operational reviews. The State Council has approved pilot FTZs for 18 provinces or municipalities in China, namely: Shanghai, Tianjin, Fujian, Guangdong, Liaoning, Zhejiang, Hubei, Henan, Chongqing, Sichuan, Shaanxi, Hainan, Shandong, Jiangsu, Guangxi, Hebei, Yunnan and Heilongjiang.
The New Policy does not specify the implementation details, such as qualifications for applicants, license approval procedures or licensed region coverage, but it implies that the regulatory bodies could expand the current 7 licensed regions for cord blood banking up to 19 regions, including Beijing.
The Company cautions its shareholders and others considering trading its ordinary shares that detailed rules on the implementation of the New Policy is yet to be provided by relevant government agencies. Therefore, at the moment it is difficult to make an informed prediction/judgement regarding the potential implications upon the regulatory environment and competitive landscape of the cord blood banking industry in China. The Company will issue further announcements to keep the market informed in case of any new material developments.
*Direct translation for reference only
About Global Cord Blood Corporation
Global Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Global Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit the Company's website at http://www.globalcordbloodcorp.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates", "believes", "expects", "can", "continue", "could", "estimates", "intends", "may", "plans", "potential", "predict", "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Tel: (+86) 10-6583-7511
U.S. Tel: (+1) 646-405-5185
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