Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) ("Skystar" or the "Company"), a China-based manufacturer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, announced that it will commence product testing of two additional product dosage forms: oral solution and injectable soluble powder specifically formulated for Skystar's veterinary line of medicines.
The product testing process will ensure that the new dosage forms will adhere to good manufacturing practices (GMP) consisting of: quality assurance of raw materials, record keeping of substances, production and process controls, warehouse and distribution protocols and safety standards. Skystar will then submit an application to the Chinese Ministry of Agriculture for GMP inspection and certification. Following GMP approval, and assuming market acceptance, management projects that the oral solution and injectable soluble powder line of veterinary medicines to have an estimated annual production capacity of twenty million units, potentially giving an additional five million dollars in annual revenue by fiscal 2011. Currently, Skystar's facility is manufacturing veterinary medicines that are delivered via injections, pulvis, powders, granules, tablets and premix forms.
They are forecasting 2010 revenue of $44 to $46 million. Now 2011 is starting to look very interesting as you will have this additional $5 million and the continued ramp up of the new vaccine facility plus any potential acquisitions! Current value of less then $60 million is cheap.