In February 2008, China Sky signed an agreement to acquire Heilongjiang Tianlong Pharmaceutical, Inc. ("Tianlong"), an external-use drug manufacturing specialty pharmaceutical company, through which the Company will obtain $8.3 million in assets, which include $0.5 million in inventory, land use rights, GMP-certified manufacturing facilities, state-of-the-art production equipment, a research and development center, a portfolio of 69 approved drugs (in 98 forms) and a pipeline of 38 new drugs, all of which have been submitted to the SFDA for approval. The acquisition is subject to a due diligence review of Tianlong, as well as approval by the appropriate regulatory authorities in the PRC. In 2007, Tianlong generated revenue of $5.2 million with a net profit margin of 13%. China Sky One Medical expects Tianlong to be accretive to earnings, generating revenues of approximately $7.5 million and net profit of approximately 30% in 2008.
In March 2008, the Company appointed four new independent directors to its board: Song Chun Fang, Jiang Qi Feng, Zhao Jie and Qian Xu Feng. As a result, the number of directors has increased from three to seven and the majority of the Company's directors are now independent. The Company also formed finance, executive, compensation and corporate governance and nominating committees.
In March 2008, the Company filed an application to list its shares on the American Stock Exchange.
"In 2008, we expect to see continued growth in sales and anticipate a
growing contribution from sales of our proprietary products. We plan to
utilize the capital raised in our private placement to fund our exciting
new R&D initiatives and to make strategic acquisitions. We anticipate
completing complete our acquisition of Tianlong, which will not only be
accretive to earnings, but will expand our product lines and improve our
production and R&D capabilities
|SOURCE China Sky One Medical, Inc.|
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