Global Cord Blood Announces NHC Policy Update

Rhea-AI Summary

Global Cord Blood Corporation (NYSE: CO) has reported that China's National Health Commission has issued a new policy prohibiting the acceptance of applications for cord blood banking licenses in 2021. This decision aims to enhance public health and refine related policies. Currently, the company holds three existing licenses covering Beijing, Guangdong, and Zhejiang. The company warns shareholders about the lack of details regarding future regulatory changes in the sector and commits to issuing updates as necessary.

Positive

• The company holds three existing cord blood banking licenses in Beijing, Guangdong, and Zhejiang, providing a stable operational base.

Negative

• The new policy halting license applications could limit future expansion opportunities for the company.

HONG KONG, Jan. 5, 2021 /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") has issued a new policy stating that no applications for cord blood banking licenses in China will be accepted in 2021.

On December 30, 2020, the NHC's General Office announced the Notice Regarding the Matters Related to Issuance of Cord Blood Banking License* (the "Policy"). According to the Policy, in order to improve public health and medical safety and for the authorities to refine cord blood banking related policies, monitoring processes, and enforcement measures, it is decided that no cord blood banking license applications will be accepted in 2021.

The Company currently has 3 existing cord blood banking licenses in China which cover Beijing municipality, Guangdong province and Zhejiang province.

The Company cautions its shareholders and others considering trading its ordinary shares that the Policy did not provide further details regarding the regulatory landscape of the cord blood banking industry in China. The Company will issue further announcements 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
Email: ir@globalcordbloodcorp.com

ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (+1) 646-405-5185
Email: william.zima@icrinc.com

 

View original content:http://www.prnewswire.com/news-releases/global-cord-blood-announces-nhc-policy-update-301200781.html

SOURCE Global Cord Blood Corporation

FAQ

What is the new policy announced by China's National Health Commission regarding cord blood banking in 2021?

The policy states that no applications for cord blood banking licenses will be accepted in 2021.

How many cord blood banking licenses does Global Cord Blood Corporation currently hold?

The company currently holds three cord blood banking licenses covering Beijing, Guangdong, and Zhejiang.

What impact does the new NHC policy have on Global Cord Blood Corporation?

The policy limits future expansion opportunities by prohibiting new license applications.

When was the new policy regarding cord blood banking licenses issued?

The policy was issued on December 30, 2020.

What services does Global Cord Blood Corporation provide?

The company provides cord blood collection, laboratory testing, stem cell processing, and storage services.