"At this stage in our corporate development, we are pleased to increase our visibility by listing on the NASDAQ Capital Market," Weibing Lu, Skystar’s Chairman and Chief Executive Officer, stated.
Skystar is currently the only China-based veterinary supply company that is listed on a US stock exchange.
"We are competing in a young and fragmented industry where demand exceeds supply. We hold a significant competitive advantage by offering four product lines that address key segments of the animal farming industry, whereas most of our competitors offer only one or two products.
“We also strive to deliver higher quality and more effective products, with lower prices and better service than our competitors.
“We are leveraging our extensive distribution network and solid customer base by adding an estimated 40 products currently under development. In addition, we are seeking to increase our manufacturing capabilities as well as exploring acquisition opportunities in our industry.
Completion of facilities
Skystar is in the process of completing their vaccine manufacturing facility, which is expected in the fourth quarter of this year.
"Once completed, this facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a projected increase in revenue of $14 million with gross margin of $8.4 to $9.8 million in 2010,” Lu said.
“We also expect to complete our micro-organism and feed additives facility in the fourth quarter of this year, which is anticipated to increase our micro-organism and feed additives production capacity by 48.7%. Once completed, the micro-organism facility is expected to add $2.7 million in revenue with gross margin of $1.9 million in 2010."
Four product lines
Skystar’s veterinary healthcare and medical care products cover the major segments of the animal farming industry through its four product lines: veterinary medications, micro-organisms, feed additives and veterinary vaccines.
The Company has a robust portfolio of over 170 products, as well as over 40 products under development for which it expects approval this year.
Skystar has a strategic sales and distribution network of more than 1,128 agents and 400 direct customers. Its distribution network covers all 29 farm producing provinces in China.