HARBIN, China, July 15 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. (“China Sky One Medical” or “the Company”) (Amex: CSY), a leading fully integrated pharmaceutical company producing external use, over-the-counter drugs in the People’s Republic of China (“PRC”), announced today that it signed an agreement with Harbin Baolong Pharmaceutical Company on July 12 to distribute the Company’s prescription drugs.
China Sky One, which has a history of producing external use and over-the-counter drugs, has recently acquired pharmaceutical companies that develop and produce prescription drugs. As a result, prescription drugs manufactured by China Sky One have doubled and now make up approximately 30% of its total product lines. Harbin Baolong Pharmaceutical Company, which has an extensive distribution network for prescription drugs in China, achieved revenues of in excess of RMB 500 million (USD $73.1 million) in each of the last two years.
The agreement, which initially runs over five years, has an estimated value of approximately RMB 61.5 million (USD $9 million) per year. To date, China Sky One has been selling five of its prescription drugs through Baolong’s distribution network, which it expects will generate sales of approximately RMB 20.5 million (USD $3 million) from August 2008 to December 2008.
“We are excited to be cooperating with Harbin Baolong Pharmaceutical Company,” said Mr. Yan-Qing Liu, Chairman, CEO and President of China Sky One Medical, Inc. “We are confident that our move into the prescription drug market via Baolong’s strong distribution channel represents a solid opportunity for future growth and can ultimately help us expand our market share and increase profitability going forward.”
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company ("TDR") and Harbin First Bio- Engineering Company Limited ("First"), the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.