China Sky One Receives Approval for Clot Buster Injection

China Sky One Medical, Inc. (AMEX: CSY) received production approval for three injected products, including a propyl gallate injection for the treatment of acute cerebral infarction, coronary heart disease, thrombosis, dysmenorrheal and nephropathy.

China Sky One expects to launch its propyl gallate injection product in August. The company projects that it will produce Q4 revenues of $3 million. A $12 million annual run rate represents a significant boost for China Sky One, which officially guided analysts to expect Q2 revenues to hit $19.5 million and full-year 2008 revenues to come in at $82 million. Those numbers were released before the current approvals, and it was not clear if China Sky One factored the new revenues into their forecasts.

One of the company’s subsidiaries, Heilongjiang Tianlong Pharmaceutical, completed the R&D work for eight different types of injections, including the propyl gallate product. China Sky One acquired Heilongjiang Tianlong in March, and the acquisition was one reason cited for an expected 57% increase in revenues during Q2.

Because the production process for the propyl gallate injection is complex, only seven other manufacturers in China are currently able to produce it.

China Sky One’s traditional offerings have been externally applied products, both patch products and ointments. It has made two acquisitions in 2008 that broadened its offerings. Beside Heilongjiang Tianlong, China Sky One bought Peng Lai Jin Chuang Company in June 2008.

Disclosure: none.