China's Skystar expects further growth on US exposure

Skystar Bio-Pharmaceutical Co., a bio-pharmaceutical company in China, expects further growth following its recent common stock listing on the NASDAQ Capital Market.

Lu Weibing, Skystar's chairman and CEO, said they are pleased to increase their visibility by listing on the NASDAQ Capital Market.

Skystar is currently the only China-based veterinary supply company that is listed on a US stock exchange.

Lu said they have an estimated 40 products currently under development, and the company is seeking to increase its manufacturing capabilities and explore acquisition opportunities in the industry.

Skystar is also in the process of completing the construction of its vaccine manufacturing facility by the fourth quarter of this year. Once completed, the facility is expected to increase the company's vaccine production capacity by 2,300 percent from 250 million units to six billion units, with a projected revenue increase of US$14 million with gross margin of US$8.4-US$9.8 million in 2010, Lu said.

Also expected to complete construction in the fourth quarter is the company's micro-organism and feed additives facility, which is projected to increase production capacity by 48.7 percent. The facility is expected to add US$2.7 million in revenue with gross margin of US$1.9 million in 2010, Lu said.

Skystar Bio-pharmaceutical Company is one of China's leading manufacturers and distributors of vaccines and medicines for poultry, livestock and domestic pets.