China Sky One Adds Nasal Spray to Product Line

China Sky One Medical, Inc. (CSKI) reported that its wholly-owned subsidiary, Heilongjiang Tianlong Pharmaceutical, obtained production approval from the SFDA in China for a TCM-based nasal drop that treats allergic rhinitis and sinusitis. According to China Sky One, the TCM formula produces fewer side effects than its competitors, which contain chemicals or hormones.

The company also said that four other China companies have production licenses for a nasal drop product with a similar TCM formula. However, the other four enterprises do not have a distribution network comparable to China Sky One’s, and for that reason, the other manufacturers do not market their TCM-based nasal drops.

China Sky One expects to begin distributing the new product in February of next year. It predicts the nasal drops will add about $3 million to 2009 revenues.

China Sky One is more active than any other U.S.-listed China-based biopharma in terms of making deals and advancing its pipeline of new drug products. Last month, it paid $2.2 million to buy 9 new products that will raise $5 million in additional revenue. In October, it received approval for two new TCM products that will generate at least $1 million in revenue.

In September, the company increased its full-year 2008 revenue guidance to $88- $90 million. Net income is expected to total between $27 and $28 million. Those figures represent an increase of 80% over its year-earlier performance. In 2007, the company reported profits of $15 million on revenues of $49 million. The company has apparently decided not to pay any attention to the economic slowdown, staying very heavily committed to its expansionist strategy.

Disclosure: none.