December 6, 2007

 

China's Skystar launches new R&D centre in Shanghai

     

 

Skystar Bio- Pharmaceutical Co., a bio- pharmaceutical company in China, announced a new research and development centre in Shanghai after announcing last month a rise in revenue to a record US$5.4 million for the third quarter.

The R&D Center, registered as Shanghai Siqiang Biotechnology Co., Ltd., utilises equipment such as liquid chromatography and infrared dissolution and infiltration equipment.

 

The facility is staffed with six chief researchers, four of whom are from the Chinese Academy of Agricultural Sciences ("CAAS") who have participated in national key science and technology projects, and havepublished numerous academic papers in Chinese and foreign journals.

 

The CAAS researchers include Ms Jin Lingmei, who presided over many high-level scientific research projects including two national projects, a CAAS Dean Foundation project, a Swedish International Scientific Research Foundation project and seven provincial projects.

 

She was also part of a team that established a near-infrared laboratory for Degussa Pacific Ltd., and has cooperated with companies such as Finnish Forage, and BASF.

 

Jin has also published over 80 research papers in domestic and foreign journals.

 

"Our new R&D Centre further strengthens our capabilities with experienced and distinguished professionals in each of our three key product areas. We look forward to working with Ms. Jin and the rest of our new research team to develop vaccines for common diseases among humans and animals, medicines for parasitic diseases, and microorganism products that include probiotics and antibiotics," commented Skystar's CEO, Lu Weibing.

 

"By locating our R&D center in Shanghai, the economic center of China, we believe the facility will attract high-level talent from all over the country and serve as a base to cultivate future talent," he added.

 

Last month the company announced its gross profit climbed 95 percent on-year to a record US$3.2 million, while margin improved  12.6 percent to 58.4 percent

 

The company also said it launched 20 new veterinary products including Swine High-Fever Syndrome First Aid Kit and the Cure King series and reported utilisation rate of its new veterinary factory at 65 percent.

 

The increase in revenue was due to increased sales as a result of new products launched, an aggressive marketing campaign and stronger brand name awareness, Lu said.

 

For the third quarter of 2007, veterinary medicines generated 51 percent of revenue, doubling to $2.8 million from $1.4 million in the same period a year ago.

     

Microorganisms accounted for 34 percent of total revenue with vaccines contributing approximately 6 percent of revenue and feed additives representing the remaining 9 percent.

           

Research and development costs were US$117,604, or 2.2 percent of revenue, in the third quarter of 2007 compared to US$19,372, or 0.5 percent of revenue, in the same period a year ago.

 

The increase is attributed to research for antiparasitic and small molecule peptide medicines in addition to the development of new feed additives.

   

This year, Skystar received approval for 69 new veterinary medicines from the Ministry of Agriculture and expects approval for 40 more by year end. Of the 69 approved, 59 have been successfully launched, Lu said. 

     

Skystar reaffirms its outlook for full year 2007 for revenue to be in the range of US$12.0 million to $14.0 million and non-GAAP net income to be in the range of US$2.5 to US$3.0 million.