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China Sky One Medical (NSDQ: CSKI) expects 2010 revenues to grow by 20% to $156 million. Net income, however, will increase by a more modest 13% to $39 million, as the company ups its R&D to 15% of revenue. At the same time, the company said it will shift its corporate focus to cardiovascular medicine and antibiotic drugs.

China Sky One has been a very ardent practitioner of M&A as a way of increasing its revenues. Because the new focus seems like a serious departure from its traditional expertise in topically delivered drugs, China Sky One may have some additional transactions in mind. The company said only that it “plans to make significant investment in the development of high margin branded drugs to support long-term sustainable growth.”

The company’s statements about the future came as part of its review of 2009’s financial results. Last year, China Sky One’s revenues jumped 42% to $130 million, while net income climbed a smaller 13% to $34.5 million. The company said acquisitions drove revenues higher, but expenses at some of its new divisions were higher than expected, keeping a lid on profits. China Sky One also completed new company headquarters, which it occupied in January.

Disclosure: none.

Source: China Sky One Predicts Improved 2010