Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) is the only Chinese animal healthcare pure play company listed in the U.S. As such, they have rapidly become one of China's leading individually-packaged animal wellness and pharmaceutical companies. They have over 300 employees spread across four different manufacturing plants.
They develop, manufacture, package, and distribute vaccines, Western medicine, topicals, supplements, probiotics, Traditional Chinese Medicine, diagnostic kits, and much more throughout all 29 of China's agricultural provinces. Their four biggest product lines are veterinary medicine, probiotics, feed additives, and veterinary vaccines, in that order.
The company is in a very solid position in their industry, as there are GMP Compliance barriers to entry that Skystar has already met, but newer competitors could struggle with. The company also has over 100 drugs and forumlas under license, which means they have a solid grasp on many areas in the animal wellness markets. The company has seen their gross profit increase at a compounded annual growth rate of 25% from 2006 to 2013, which has provided a steady uptrend for investors previously.
China as a whole has one of the largest animal husbandry markets in the entire world. The Chinese government is actively promoting initiatives in veterinary medicine and animal health and wellness, which supports the expected steady growth trajectory of the industry in China. Skystar already has more than 4,000 customers, with 2,893 of those being distributors and 1,122 being direct customers. 360 of the distributors have Skystar marketing pieces installed in their storefronts, which promotes brand recognition for Skystar. With aggressive promotion activities like these, and steady growth trends historically, Skystar is on track to continue growing rapidly with Chinese animal health and wellness initiatives taking effect.
