HARBIN, China, Feb. 29 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. (“China Sky One Medical” or “the Company”) (OTC Bulletin Board: CSKI), a leading manufacturer, marketer, and distributor of over the counter pharmaceuticals for external use in the People’s Republic of China (“PRC”), today announced that it has signed an agreement to acquire Heilongjiang Tianlong Pharmaceutical, Inc. (“Tianlong”), an external-use drug manufacturing specialty pharmaceutical company.
Under the terms of the agreement, China Sky One Medical’s wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Tianlong’s operations for a cash payment $8.0 million and approximately $300,000 of China Sky One Medical’s common shares. In exchange, China Sky One Medical will obtain Tianlong’s $8.3 million in assets, which include $0.5 million in inventory, land use rights, GMP-certified manufacturing facilities, state-of-the-art production equipment, a research and development center, a portfolio of 69 approved drugs (in 98 forms) and a pipeline of 38 new drugs, all of which have been submitted to the SFDA for approval. The acquisition is expected to close on or before March 31, 2008.
“We expect the synergies of this strategic acquisition to make a significant contribution to our profitability in the coming years. Specifically, Tianlong allows us to broaden our product lines and improve our manufacturing and R&D capabilities. At the same time, we expect to leverage our sales and marketing expertise and the benefits of scale to significantly improve Tianlong’s revenues and profitability,” said Mr. Yan-qing Liu, Chairman, CEO and Director of China Sky One Medical, Inc.
In 2007, Tianlong generated revenue of $5.2 million with a net profit margin of 13%. Following the acquisition, China Sky One Medical expects Tianlong to be accretive to earnings, generating revenues of approximately $7.5 million and net profit of approximately 30% in 2008.
About Heilongjiang Tianlong Pharmaceutical, Inc.
Founded in 2000, Heilongjiang Tianlong Pharmaceutical, Inc. (“Tianlong”) is a specialty pharmaceutical company which develops, manufactures, and distributes drugs for external use. Tianlong’s lead products include externally applied treatments for dermatitis and eczema. Additionally, Tianlong recently introduced an injectable drug for the treatment of coronary heart disease and cardiomyopathy. Through its GMP-certified manufacturing facilities and R&D center, Tianlong develops and manufactures drugs in various forms. Tianlong’s distribution networks covers approximately one third of China, primarily in the northeast and northwest regions.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company whose principal operations are through its subsidiaries, which are engaged in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic kit 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 as its primary 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.
For more information, please contact:
China Sky One Medical, Inc.
Ms. Xiaoyan Han, CFO
Tel: +86-1335-999-3681
Email: tdrhan@163.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com