XI'AN, China, Aug. 13 Skystar Bio-Pharmaceutical Co., Ltd. (OTC Bulletin Board: SKBI) ("Skystar"), a leadingbio-pharmaceutical company in the People's Republic of China ("PRC"), todayannounced that it has received approval from the PRC Ministry of Agriculturefor the production of 13 new veterinary medicines. These approvals bring thetotal number of medicines approved in 2007 to 49.
The 13 new products are all Western type medicines and they will beproduced in powder form, tablet form and injectables. Two of the approvedproducts, once introduced to the market, are expected to generate very strongsales and become part of Skystar's core product line. The average grossmargins on these new products are expected to be over 50%.
The addition of these new products brings Skystar's product line to over80 veterinary medicines.
Skystar Liqing ("Liqing") is a new compound colibacillosis medicine thatis highly effective in protecting and cleaning intestinal ducts in animals.Liqing has a dual anti-bacterial mechanism that kills various serotypeEscherichia coli ("E. coli") bacteria, and rapidly absorbs and cleansesenterotoxin and bacteria-induced enolotoxin. The medicine is especiallyeffective in treating E. coli induced pericarditis, perihepatitis, peritonitis,salpingitis and airsacculitis. With little drug resistance and cross-resistance, Liqing is suitable for use in mid- and large-scale stockbreedingfarms and export-oriented stockbreeding bases. The company expects thecompound medicine to be used in prevention of veterinary epidemics. Skystarprojects that this product should generate about $400,000 in total sales forthe remainder of 2007.
Skystar Ke Chuan Ning ("Ke Chuan Ning") is a lincomycin hydrochlorideinjection that treats upper respiratory diseases in livestock. Ke Chuan Ningorganically combines broad-spectrum, anti-microorganism medicines toeffectively resolve the drug-resistance issues that are common in a series ofantibiotics currently used to treat respiratory tract bacteria. This productguarantees strong anti-bacterial effects and rapidly controls the respiratorydifficulties in infected livestock. With brand-new preparation techniques,highly effective processing and three refining procedures, Ke Chuan Ning iseasily absorbed into the animal's immune system and maintains a highconcentration in the lungs. This product is expected to contribute about$370,000 in total sales for the remainder of 2007.
"The addition of these new products keeps us on track with our goal tohave 100 new veterinary medicine approved by the end of 2007. We expect thesenew products to significantly contribute to our revenue growth. The 13 newdrugs broadens our product lines as well as deepens our concentration in someprevalent diseases," commented Mr. Weibing Lu, Chairman and Chief ExecutiveOfficer of Skystar. "With our increasingly deeper penetration of the marketand our diversified and enlarged product portfolio, we are well positioned tokeep increasing our market share. We will continue introducing additional newveterinary medications throughout the rest of the year."
About Skystar Bio-Pharmaceutical
Skystar Bio-Pharmaceutical Company is a China-based producer anddistributor of vaccines, microorganisms and veterinary medication to cure andprevent disease in poultry, livestock, birds and pets. The company's productline consists of more than 100 products with over 50 additional products inthe developmental stage. Skystar has formed strategic sales distributionnetworks throughout China. The company recently completed the first phase ofconstruction of new state-of-the-art bio-pharmaceutical facilities covering anarea of almost eight acres. The new facilities meet or exceed all GoodManufacturing Practice (GMP) Certification Standards and have received GMPCertification from the Chinese government. For additional information, pleasevisit http