HARBIN, China, June 12 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. (Amex: CSY) "China Sky One Medical," "CSY"), a manufacturer, marketer and distributor of pharmaceutical, medicinal and diagnostic kit products in China, today announced that it has signed an agreement to acquire Peng Lai Jin Chuang Company ("Jin Chuang"), a newly established pharmaceutical company that has obtained Good Manufacturing Practice Certification (GMP) approval issued by the country's State Food and Drug Administration (SFDA).
Under the terms of the agreement, China Sky One Medical's wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Jin Chuang's assets for a cash payment of RMB 17 million (US $2.5 million; 1 RMB = $0.14 US dollars) and RMB 32 million (US $4.6 million) of China Sky One Medical's common shares. In exchange, China Sky One Medical will obtain Jin Chuang's RMB 70 million (US $10.1 million) in assets, which includes franchise, production and operating rights for a portfolio of 20 approved drugs, including drugs for the treatment of colds, cardiovascular disease, and depression. The acquisition is expected to close on or before June 30, 2008.
"We expect the synergies that we will realize from this strategic acquisition to make a significant contribution to our profitability in the coming years," said Mr. Yan-qing Liu, Chairman, CEO and President of China Sky One Medical, Inc. "Specifically, Jin Chuang allows us to broaden our product lines and improve our manufacturing capabilities. We have been focused primarily on external use products; however following this acquisition a new pipeline of internal use drugs can enhance our product line. Since Jin Chuang is a newly established company and has not yet started production, we expect it will begin contributing to our profitability at the end of this year."
About Peng Lai Jin Chuang Company
Peng Lai Jin Chuang Company ("Jin Chuang"), Peng Lai Jin Chuang Group Corporation's wholly-owned subsidiary, has just been set up to develop, manufacture, and distribute pharmaceutical, medicinal and diagnogistic products in China. Jin Chuang's lead products include Chinese treatments for health improvement. Through its GMP-certified manufacturing facilities, Jin Chuang develops and manufactures drugs in various forms.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company whose principal operations are through its subsidiaries, which are engaged in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic kit products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company (''TDR'') and Harbin First Bio- Engineering Company Limited ("First"), the Company manufactures and distributes over-the-counter pharmaceutical products as its primary revenue source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements can be identified by the use of
forward- looking terminology such as "believe," "expect," "may," "will,"
"should," "project," "plan," "seek," "intend," or "anticipate" or the
negative thereof or comparable terminology. Such statements typically
involve risks and uncertainties and may include financial projections or
information regarding our future plans, objectives or performance. Actual
results could differ materially from the expectations reflected in such
forward-looking statements as a result of a variety of factors, including
the risks associated with the effect of changing economic conditions in The
People's Republic of China, variations in cash flow, reliance on
collaborative retail partners and on new product development, variations in
new product development, risks associated with rapid technological change,
and the potential of introduced or undetected flaws and defects in
products, and other risk factors detailed in reports filed with the
Securities and Exchange Commission from time to time.
For more information, please contact:
China Sky One Medical, Inc.
Mr. Xiaoqing Liao, CFO
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
|SOURCE China Sky One Medical, Inc.|
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