June 12, 2007

 

China's Skystar receives approval for 36 new veterinary medicines

 

 

China's Skystar Bio-Pharmaceutical Co., Ltd. announced that it received approval for 36 of new veterinary medicines from China's Ministry of Agriculture.

 

This would nearly double Skystar's veterinary medicines on offer from 36 to more than 70. The new offerings include 14 western medicines and 22 traditional Chinese medicines (TCM) medicines.

 

Skystar began manufacturing thirteen of the new products in April 2007 and will begin manufacturing the additional twenty products by the end of June.

 

The average gross margin for these new products is expected to be above 50 percent.

 

The company expects three of the new products to be used in pigs and piglets to become top sellers.

 

The first, Chinese Goldthread (Huanglian) Detoxification Powder ("CGDP") is a TCM to treat pig diseases such as upper respiratory tract inflammation, acute bronchitis, pneumonia, diarrhea, contagious gastritis and crucially, the blue-ear disease, which has garnered much attention in the media recently.

 

CGDP is estimated to generate annual revenue of RMB 5 million (US$652,000) in 2007.

 

Other products include Kanamycin Sulfate Injection, a Western drug that is designed for treatment of blood poisoning, urogenital and respiratory inflammation in pigs and other animals. The injection is 20 times more powerful than antibacterial powder forms and is said to be very effective in overcoming drug tolerance. The product is also said to be effective in targeting pathogens in both hibernation and growing periods.

 

The company expects the product to generate revenue of RMB 3.5 million this year (US$456,000). 

 

The third product, Thiamphenicol Powder, is the third generation of chloramphenicol and is over five times more effective than previous versions of the drug. The product cures a series of diseases in pigs and other animals and is expected to generate RMB 3 million (US$390,000) in 2007.

 

These three drugs targeting the pig market are especially timely as hog prices are high now due to increasing demand for pork, commented Lu Weibing, Chairman and Chief Executive Officer of Skystar.

 

The company is said to have more than 50 products in the developmental stage.

 

Skystar Bio-Pharmaceutical Company is a China-based producer and distributor of vaccines, microorganisms and veterinary medication.

 

The company is manufacturing these new products at its new 126,900 square foot production facilities in Fengjing Industrial Park in Hu County, Xi'an, which became operational in December 2006.

 

The company was granted Good Manufacturing Practice ("GMP") certification for its facilities in November 2006 and received its GMP certificate for the manufacturing of veterinary medication in January 2007.