China Central Television (CCTV) has reported that the annual sales of Jiangsu Stem Cell Osdbio, which has provided embryonic stem cell therapy to more than 400 people, is estimated to be nearly 100 million yuan (US$16.1 million).

Between Feb-June 2012, 32 individuals were injected with a combined 123 doses of embryonic stem cells. Osdbio charged between 120,000 yuan (US$19,350) and 180,000 yuan (US$29,000) per dose, a financial report revealed.

According to pilot regulations for clinical research and testing of embryonic stem cells, such research has to be carried out at bases designed for clinical research of embryonic stem cells. Further, the clinical bases are chosen by related government agencies.

Except for the treatment of hematopoietic stem cells, China has not allowed any medical institution to use any sort of stem cell therapy for an illness, let alone granted such permissions to companies.

Additionally, Osdbio claimed that its embryonic stem cells were sourced from aborted fetuses.

The biotechnology firm set up an illegal supply chain by illegally obtaining aborted fetuses, according to the report. It promoted its treatment, as well as charged high fees before offering medical treatment without permission at community hospitals, according to the CCTV report.

Osdbio had been maintaining a low profile since its illegal practices were disclosed by the media and its chairman, Zhou Xuan, has refused to give any more interviews.

The company, which was established in 2009, stated on its official website that it was engaged in the research and development, production and application of biotechnology in stem cells. It provides healthcare services and uses stem cell transplants for those who are critically ill.

Far East Holdings Group, one of the major investors in Osdbio, issued a statement on March 21 saying that Chinese authorities had begun investigating Osdbio and that the aforementioned media reports were untrue.