HARBIN, China, Dec. 3, 2010 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that its profitability is not expected to be affected by recent price adjustments enforced by China's National Development and Reform Commission ("NDRC") as the Company does not have any products on the price cut list. Furthermore, the Company's ability to discretionarily price roughly 80% of current portfolio and pipeline products lessens the Company's exposure to potential future price cuts by the NDRC.
On November 29, 2010, Chinese NDRC announced a new round of price control measures, including price cuts on 174 drugs as well as cancellation of preferential pricing treatment on 16 drugs, effective December 12, 2010. The affected drugs have the following characteristics: 1) primarily off-patent products that are produced by foreign-owned or joint venture pharmaceutical companies, and 2) relatively mature drugs. With the purpose of encouraging innovation, these types of drugs have been priced separately since 2000 and are often several times more expensive than similar generics produced by domestic-funded enterprises. With an average 19% price cut, the Chinese government estimates that such measures could save 2 billion RMB per year for the public.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company, Harbin First Bio-Engineering Company Limited, Heilongjiang Tianlong Pharmaceutical, Inc. and Peng Lai Jin Chuang Pharmaceutical Company, the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.cski.com.cn.
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 the Company's product portfolio and pricing freedom. 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.
Investor Relations Contact:
China Sky One Medical
CCG Investor Relations
Stanley Hao, Vice President
Crocker Coulson, President
Mabel Zhang, Vice President
SOURCE China Sky One Medical, Inc.