XI'AN, China, June 11 /Xinhua-PRNewswire-FirstCall/ -- Skystar Bio-Pharmaceutical Co., Ltd. (OTC Bulletin Board: SKBI) ("Skystar"), a leading bio-pharmaceutical company in the People's Republic of China ("PRC"), today announced that it received approval for the production of 36 new veterinary medicines from the PRC Ministry of Agriculture.
The addition of these new products increases the total number of Skystar's veterinary medicines to over 70. The 36 new products include 14 western medicines and 22 traditional Chinese medicines (TCM) medicines which will be produced in powder, injection or tablet form. Skystar began manufacturing thirteen of the new products in April 2007 and will begin manufacturing the additional twenty products by the end of June. The average gross margin for these new products is expected to be above 50%.
Three of the new products target a variety of indications in pigs and piglets and are expected to become top sellers. Chinese Goldthread (Huanglian) Detoxification Powder ("CGDP") is a TCM which clinical tests have shown is especially effective in treating pig diseases such as upper respiratory tract inflammation, acute bronchitis, pneumonia, diarrhea, contagious gastritis and blue-ear disease, also known as Porcine Reproductive and Respiratory Syndrome (PRRS). GGDP has overcome many of the shortcomings of traditional Chinese medicines such as slow effectiveness and unstable components. Its effectiveness in the prevention and treatment of viral diseases such as blue-ear disease is a significant advantage. CGDP is estimated to generate annual revenue of RMB 5 million in 2007.
Kanamycin Sulfate Injection is a Western drug that is designed for treatment of blood poisoning, urogenital and respiratory inflammation in pigs and other animals. The injection is 20 times more powerful than antibacterial powder forms of the drug and it is very effective in overcoming drug tolerance. The injection restrains and stops the growth and propagation of pathogens and is effective in targeting pathogens in both hibernation and growing periods. Kanamycin Sulfate Injection is estimated to generate annual revenue of RMB 3.5 million in 2007.
Thiamphenicol Powder is the third generation of chloramphenicol and is over five times more effective than previous versions of the drug. Thiamphenicol Powder cures a series of diseases in pigs and other animals and is estimated to generate annual revenue of RMB 3 million in 2007.
"We have high expectations that the addition of our new products will significantly contribute to our revenue growth. Our three drugs targeting the pig market are especially timely given that hog prices are at an all-time high due to increasing demand for pork and higher hog feed costs," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar. "Moreover, the addition of these new veterinary medications dramatically enhances our product offering. We intend to continue introducing additional new veterinary medications throughout the rest of the year."
Skystar is manufacturing these new products at its new 126,900 square foot production facilities in Fengjing Industrial Park in Hu County, Xi'an, which became operational in December 2006. The company was granted Good Manufacturing Practice ("GMP") certification for its facilities in November 2006 and received its GMP certificate for the manufacturing of veterinary medication in January 2007. Skystar was granted a Veterinary Drugs Production Permit from the State Ministry of Agriculture in February 2007.
About Skystar Bio-Pharmaceutical
Skystar Bio-Pharmaceutical Company is a China-based producer and distributor of vaccines, microorganisms and veterinary medication to cure and prevent disease in poultry, livestock, birds and pets. The company's product line consists of more than 100 products with over 50 additional products in the developmental stage. Skystar has formed strategic sales distribution networks throughout China. The company recently completed construction of new state-of-the-art bio-pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit http://www.skystarbio-pharmaceutical.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events including revenues and gross margins could differ materially from management's current expectations. Such factors include, but are not limited to the company's ability to accurately complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, market acceptance of new products, competitive pressures, scale-up of manufacturing, political and economic factors in the People's Republic of China, the company's ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
