China Sky One Expands Portfolio with Two New Drugs

May.27.09 | About: China Sky (CSKI)

China Sky One Medical (NSDQ: CSKI) announced further additions to its ever-larger portfolio of pharmaceutical products. The company reported the SFDA approved production of two new drugs, bringing to 25 the total number of approvals for China Sky One Medical since January 2008. Another 20 products are in the application process.

The two most recently approved products are (1) acyclovir gel, a topical treatment for skin infection caused by varicella-zoster virus and the herpes simplex virus, and (2) Shuanghuanglian suppositories, which relieve symptoms of cold and flu, including fever, cough and sore throat pain. Shuanghuanglian suppositories also treat upper respiratory infections and pneumonia.

China Sky One Medical began its R&D work on the two drugs in 2003 and submitted their SFDA approval applications in early 2007. In addition, the company recently received SFDA approval to begin clinical trials of Diclofenac Sodium suppositories, a treatment for rheumatoid arthritis and also a treatment for pain from surgery and fever.

Because both of the newly approved products treat common diseases, China Sky One Medical expects them to benefit from the move to expand healthcare in China into rural areas. Both products will be launched in Q3 of this year. China Sky One Medical did not offer any revenue projections for the products.

The news was enough to send China Sky One Medical 6% higher. It moved up 81 cents to $14.32, giving the company a market capitalization of $237 million. In the last 12 months, China Sky One has traded in a range between $6.29 and $19.11.

Disclosure: none.