Skystar Bio-Pharmaceutical Company announced that it has gained exclusive rights to sell and market its aquaculture vaccine through 2024.

 

The exclusivity is based on the patented technology that was used to develop the aquaculture vaccine, as well as a Grade I veterinary certificate that the vaccine was awarded from the Chinese Ministry of Agriculture.

 

Through its agreement with Fourth Military Medical University (FMMU), the exclusivity periods have been transferred to Skystar. Under this patented technology in collaboration with FMMU, Skystar will produce the first vaccine in China designed to safely prevent and treat certain bacterial infections and diseases in marine life without causing harmful side effects.

 

The vaccine has demonstrated the ability to increase the quality of farmed fish by increasing growth rates with no pesticide residue.

 

The company expects to begin manufacturing its aquaculture vaccine product upon the completion of its new vaccine facility, with modest revenue contribution from this product beginning in the second quarter of 2010.

 

The aquaculture vaccine is an anti-idiotypic monoclonal antibody therapeutic manufactured in powdered form so that it can be mixed with water for easy administration and rapid absorption by the fish. The vaccine is designed to safely enhance the immunity of marine life and prevent and treat bacterial infection and diseases in fishes.

 

The fish vaccine will be sold by approximately 50 agents in Skystar's existing broad distribution network. In conjunction with the planned expansion of its aquaculture product line through the introduction of additional products targeted at marine life, Skystar plans to expand its aquaculture-focused distribution network, with a goal of adding between 100 and 150 new distribution agents during 2010. As the aquaculture vaccine product line gains market traction, Skystar will also look to begin broader distribution of its vaccine including introduction throughout its franchise stores.

 

Prior to this IP acquisition, aquaculture products accounted for less than 1% of Skystar's annual revenue. The Company's existing aquaculture product portfolio includes five micro-organism products for the health protection of marine life.

 

"With our early entry and product exclusivity, we believe we hold significant competitive advantage in capturing considerable aquaculture market share," said Lu Weibing, Skystar's Chairman and Chief Executive Officer. "Once our vaccine has been fully engaged in the market, we project it will contribute between US$8 to US$15 million annually to our top-line within three to five years of its market introduction. This will significantly accelerate our vaccine revenue and allow us to capture approximately US$22 to US$29 million in total vaccine revenue over the same three to five year time frame."

 

In addition to the technology acquisition from FMMU, Skystar has entered into a cooperative research agreement with FMMU to advance China's aquaculture industry. Skystar will be working with researchers at FMMU to promote green aquaculture and to develop new vaccines to treat marine life and fresh water fish, as well as disease prevention and detection technologies.

 

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products.