Full Production for the Anticipated Probiotics Is Expected to Be Realized by the End of Fiscal 2017 With Revenue Opportunity of USD$4.5 Million to $6.5 Million
XI'AN, CHINA–(Marketwired – Aug 26, 2014) – Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI), a China-based manufacturer and distributor of veterinary medicine, vaccines, micro-organisms and feed additives, announced preparations to launch a new probiotic product for dairy cows by the end of fiscal 2014. The dairy cow probiotic is developed for the milk production industry in China and is designed to introduce Bacillus Subtilis (B. subtilis), also known as "Hay Bacillus," into the digestive tract of milk producing cows. Hay Bacillus has been proven to aid in the digestion and breakdown of hay in the animals' rumen canal.
Mr. Weibing Lu, Chairman and CEO of Skystar, commented, "Skystar's dairy cow probiotic is expected to launch at the end of the fiscal year and is a welcome addition to Skystar's Western medicine-based line of animal husbandry products. Currently, the demand for milk outpaces domestic supply in China and as a result consumers are buying imported dairy products such as powdered milk to meet the shortfall. We believe that Skystar's new probiotic will help improve both production and quality. This new probiotic will help increase production for China's dairy producers. We expect to see revenue contribution by the first half of fiscal 2015 and full production goals by 2017."
According to internal research, market demand in China for B. subtilis is 150,000 tons per year with a total market value of USD$1.5 billion. It's Skystar's belief that full production is expected to be realized by the end of fiscal 2017. Total potential revenue from this line is expected to be in the range of USD$4.5 million to $6.5 million."
B. subtilis natto is produced from soybeans fermented with B. subtilis. There have been a number of major dairy experiments with good results. The conclusions have included improved milk production and milk components yield, decreased somatic cell count (a metric for milk quality) increase of total ruminal bacteria and increase of proteolytic and mylolytic bacteria.
Results of trials introducing B. subtilis natto to the gut flora have demonstrated, among others:
- Anti-inflammatory properties
- Anti-stress and fatigue, enhanced immune system, improved vaccine protection force and the protection rate
- Increased milk production and milk quality
- Improved digestion and absorption of feed
- Improved rumen environment and rumen buffering capacity, promoting the growth and metabolism of rumen microorganisms, stable rumen pH, thereby improving rumen absorption of volatile fatty acids (VFA)
The same trials showed that GI tract disease was statistically reduced by 5-10%, gastrointestinal diseases lowered 70-80%, crude fiber digestion utilization increased 30-50% and average milk production increased 14%, fine feed ratio reduced by 6%.
About Skystar Bio-Pharmaceutical Company
Skystar is a China-based developer, manufacturer and distributor of veterinary healthcare and medical care products. Skystar has four product lines: veterinary medicines, probiotics, vaccines and feed additives formulated and packaged in house across several modern manufacturing and distributions facilities. Skystar's distribution network includes almost 3,000 distribution agents of which 360 are franchised stores with exclusivity agreements covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.
Safe Harbor Statements
When used in this release, the words "intends," "believes," "anticipated" and "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, without limitation, the Company's ability to launch the probitic supplement within the planned timeframe, its ability attain the anticipated gross margins, revenue and income on this product line, the Company's ability to capture the market share and commercialize on the opportunity at hand, to complete the launch of its IgG kits in the anticipated timeframe and to attain the anticipated revenue and market penetration, as well as other related efforts at the Huxian facilities, the Company's ability to timely, effectively and accurately assess the efficacy and commercial potential of any technologies that may results from such R&D efforts, the Company's ability to realize the anticipated $1.5 million revenue opportunity, the Company's ability to timely and effectively commercialize any such technologies. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Skystar Bio-Pharmaceutical Company
Scott Cramer
Director – Corporate Development & U.S. Representative
(407) 645-4433
Taylor-Rafferty
Christopher Chu
(212) 889-4350
