China Sky One Signs Distribution Deal for Asthma Patch

China Sky One Medical (CSKI) has signed an agreement with Shaanxi Xintai Pharmaceutical Company to distribute its newly approved Asthma Patch product. China Sky One focuses on OTC patch products for the China market.

The Asthma Patch is the second product that Shaanxi Xintai is distributing for China Sky One. It has also been in charge of marketing China Sky One’s Slim Patch products since early this year. Over the course of five months, from April to September of this year, China Sky One’s weight loss patches have become one of the top-selling brands in the sector.

China Sky One explained the Asthma Patch deal in terms of Shaanxi Xintai’s greater penetration of rural markets. The incidence of asthma and bronchitis is often higher in rural localities than metropolitan areas, which is where China Sky One’s distribution network is centered. 

The distribution agreement between the two companies is initially set for three years. China Sky One estimates that the Asthma Patch will generate $5 million of revenue in 2009 and increase by 50% per year.

Disclosure: none.