XI'AN, China, Aug. 13 /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 has received approval from the PRC Ministry of Agriculture for the production of 13 new veterinary medicines. These approvals bring the total number of medicines approved in 2007 to 49.
The 13 new products are all Western type medicines and they will be produced in powder form, tablet form and injectables. Two of the approved products, once introduced to the market, are expected to generate very strong sales and become part of Skystar's core product line. The average gross margins on these new products are expected to be over 50%.
The addition of these new products brings Skystar's product line to over 80 veterinary medicines.
Skystar Liqing ("Liqing") is a new compound colibacillosis medicine that is highly effective in protecting and cleaning intestinal ducts in animals. Liqing has a dual anti-bacterial mechanism that kills various serotype Escherichia coli ("E. coli") bacteria, and rapidly absorbs and cleanses enterotoxin and bacteria-induced enolotoxin. The medicine is especially effective in treating E. coli induced pericarditis, perihepatitis, peritonitis, salpingitis and airsacculitis. With little drug resistance and cross-resistance, Liqing is suitable for use in mid- and large-scale stockbreeding farms and export-oriented stockbreeding bases. The company expects the compound medicine to be used in prevention of veterinary epidemics. Skystar projects that this product should generate about $400,000 in total sales for the remainder of 2007.
Skystar Ke Chuan Ning ("Ke Chuan Ning") is a lincomycin hydrochloride injection that treats upper respiratory diseases in livestock. Ke Chuan Ning organically combines broad-spectrum, anti-microorganism medicines to effectively resolve the drug-resistance issues that are common in a series of antibiotics currently used to treat respiratory tract bacteria. This product guarantees strong anti-bacterial effects and rapidly controls the respiratory difficulties in infected livestock. With brand-new preparation techniques, highly effective processing and three refining procedures, Ke Chuan Ning is easily absorbed into the animal's immune system and maintains a high concentration in the lungs. This product is expected to contribute about $370,000 in total sales for the remainder of 2007.
"The addition of these new products keeps us on track with our goal to have 100 new veterinary medicine approved by the end of 2007. We expect these new products to significantly contribute to our revenue growth. The 13 new drugs broadens our product lines as well as deepens our concentration in some prevalent diseases," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar. "With our increasingly deeper penetration of the market and our diversified and enlarged product portfolio, we are well positioned to keep increasing our market share. We will continue introducing additional new veterinary medications throughout the rest of the year."
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 the first phase of 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.
For more information, please contact:
Skystar Bio-Pharmaceutical Co., Ltd
Scott Cramer, Director (U.S. Representative)
Tel: +1-407-645-4433
Email: scramer@skystarbio-pharmaceutical.com
CCG Elite Investor Relations
Crocker Coulson, President
Email: crocker.coulson@ccgir.com
Leslie Richardson, Financial Writer
Tel: +1-310-231-8600 x122
Email: leslie.richardson@ccgir.com
