Summary: EPPEN Biotech was prosecuted by CJ
Group for infringing lysine strain production patent. In the short run, EPPEN
Biotech would be less affected by this lawsuit, but its export business would
be hindered by this.
On 6 March, 2015, CJ Group announced that it sued Ningxia EPPEN Biotech Co.
Ltd. (EPPEN Biotech) for infringing its patent on producing lysine strain
(Patent Number: 200980103115.6) in Inner Mongolia District Court. Accordingly,
this strain is used to produce L-lysine monohydrochloride and L-lysine
sulphate. Then, CJ Group planned to precede lawsuit against EPPEN Biotech in
other places to further oppose EPPEN Biotech's infringement.
This suit will not pose great effect on the above two enterprises in a short
time. At present, EPPEN Biotech still makes quotations and supply goods as
usual. It is noted that the lawsuit may affect Meihua Holdings Group Co., Ltd.
(Meihua Bio)'s acquistion plan because it had acquired EPPEN Biotech. Meihua
Bio had sent a inquiry letter to Yan Xiaoping, president of EPPEN Biotech. On
16 March, EPPEN Biotech announced that they have not got the legal formalities
from related department.
It is noted that EPPEN Biotech's export business would be affected in the long
run, if CJ Group win the lawsuit. Chinese amino acid manufacturers are weak in
R&D ability and strain technologies of amino acids, as well as small number
of patents. Foreign amino acid giants will sue Chinese amino acid manufacturers
for infringing their strain patents, thus, part of amino acids may be banned to
export into other countries. This would restrict Chinese amino acid
manufacturers to expand the international market. Other similar lawsuit between
Ajinomoto and Global Bio-chem Technology Group Co., Ltd. happened (for more
information, please refer to Amino Acids China E-News 1409, P18, Ajinomoto's
Appeal against Global Bio-chem Disallowed). Global Bio-chem's export business
to the Netherlands market suffered a lot because it lost the suit.
Besides, Chinese amino acid market may face greater pressure if EPPEN Biotech's
export business hindered. In the past three years, the feed-grade amino acid
export business had brought great benefit to EPPEN Biotech. The income from
lysine and threonine exceeded USD910.94 million (RMB5.6 billion), of this, the
income from export business exceeded USD422.94 million (RMB2.6 billion). If
EPPEN Biotech's lysine flows into the domestic market, along with the serious
overcapacity in China, which will together push down the market price of
lysine.
Note:
Patent No: CN200980103315.6
Application date: 23 Jan., 2009
Title: A modified promotor and its preparation method of L-lysine
Applicant: CJ Group
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