Skystar Also Has Swine Flu Expertise

by: super-trades

Skystar (OTC:SKBO) is my latest stock position/idea. I recently wrote how I am in this stock because I think it has potential to be the next eFuture Information Technology (NASDAQ:EFUT), which went from $11 to $49 in 2006.

Aside from the $3-$4 EPS potential (by my estimates, but it is based on information from the filings - they did report $3.07 EPS in 2008), the growth potential, and the Avian Flu angle, I found these articles from 2007about SKBO.OB and swine fever/diseases:

Skystar Bio-Pharmaceutical Releases First Aid Kit for Swine High-Fever Syndrome (July 23, 2007):

The Company has developed prevention and treatment therapies specifically designed for large-scale pig farms.

XI'AN, China, July 23 /Xinhua-PRNewswire -- Skystar Bio-Pharmaceutical Co., Ltd. (''Skystar''; ''Company''), a leading bio-pharmaceutical company in the People's Republic of China (''PRC''), today announced that it has successfully developed a first aid kit to treat the recent outbreak of Swine High-Fever Syndrome (''SHFS'') among pigs in China. The kit is expected to generate about $526,000 in revenue during the second half of 2007.

SHFS is caused by mutated viral strains of porcine reproductive and respiratory syndrome, also know as blue ear disease, and is often complicated by porcine circovirus type 2 (PCV-2). The complication evolves in three stages. First, the viral infection damages pigs' immune system resulting in immunity paralysis or complete loss of immunity. Consequently, primary mixed infections usually follow including many other viral diseases such as hog cholera, pseudorabies, cephalitis B, parvovirus, rotavirus and influenza. Further, complicated viral infections lead to secondary mixed infections caused by highly contagious bacterial diseases such as streptococcemia, pleuropneumonia, colibacillosis, pasteurellosis and mycoplasma pneumonia. As a direct result of blue ear disease, SHFS often results in rapid infection and extremely high mortality rates.

Skystar Receives Approval For 36 New Veterinary Medicines (June 12, 2007):

Three of the new products target a variety of indications in pigs and piglets and are expected to become top sellers. Chinese Goldthread (Huanglian) Detoxification Powder ("CGDP") is a TCM which clinical tests have shown is especially effective in treating pig diseases such as upper respiratory tract inflammation, acute bronchitis, pneumonia, diarrhea, contagious gastritis and blue-ear disease, also known as Porcine Reproductive and Respiratory Syndrome (PRRS). GGDP has overcome many of the shortcomings of traditional Chinese medicines such as slow effectiveness and unstable components. Its effectiveness in the prevention and treatment of viral diseases such as blue- ear disease is a significant advantage. CGDP is estimated to generate annual revenue of RMB 5 million in 2007.

Here is what the SKBO.OB website says about the Avian Flu:

While larger international companies are focusing on vaccines to prevent people from catching avian flu, Skystar's focus is on vaccines to be administered to farm chickens and other poultry to prevent them from catching H5N1 Avian Influenza. This type of vaccine is well within Skystar's current scope and expertise and could potentially prevent an epidemic/pandemic by controlling an outbreak at the source (the poultry).

Disclosure: I am long SKBO.OB