HARBIN, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company developing and producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced that the Company's AMI Diagnostic Kit for early detection of heart disease was recognized by the National Development and Reform Commission (NDRC) as a "National Innovation Project," a designation given to innovative projects in key high technology industries.
The AMI Diagnostic Kit, which was developed by China Sky One Medical's wholly owned subsidiary, Harbin First Bioengineering Company, was nominated for the prestigious designation in early 2009, when the NDRC began the selection process for National Innovation Projects. Following a rigorous one-year review and evaluation by the NDRC, the Company's AMI Diagnostic Kit won the title because it represents leading global technology, has promising market potential, and because the developer owns all the related intellectual property rights. The official document for the title is NDRC No. 2561.
"We are inspired by the fact that our AMI Diagnostic Kit has been recognized as a National Innovation Project," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We are committed to becoming an industry leader in the research and development of high technology medical products and now have nine new diagnostic kits under development, which we believe will enhance our competitive position and contribute to our future growth."
Recipients of the National Innovation Project designation will receive a subsidy from the Chinese government of RMB 6.00 million (approximately US $0.88 million) in 2010. In addition, National Innovation Projects receive a preferential income tax rate of 15%, versus the regular tax rate of 25%. Currently, three of China Sky One Medical's wholly-owned subsidiaries, Harbin TDR Medical Science and Technology, Heilongjiang Tianlong Pharmaceutical, and Harbin First Bioengineering, receive a preferential income tax rate of 15% because they have been granted the High-Technology Enterprise Certificate by the provincial government in Heilongjiang Province, which became effective January 1, 2009.
The AMI Diagnostic Kit, which entered the market in China in 2007, is used for early diagnosis of Myocardial Infarction (MI), also known as heart disease. The testing kit requires users to place a blood sample on a marker, and a positive (+) or negative (-) sign will result, showing whether the user should consult his or her doctor for further testing. More often than not, heart disease is likely to strike people who are overweight, smoke, or suffer from diabetes. Statistics show that over 60 million patients in China currently suffer from heart disease, with approximately eight million new cases each year. Recent medical studies have shown that heart failure and heart attacks are increasing among the younger adults in China, the result of several factors, including the fast pace of a more modern life style and increased pressure from work and school. Using the AMI Diagnostic Kit for early detection of heart disease can help to reduce these statistics. For the first nine months of 2009, the AMI Diagnostic Kit accounted for approximately 7.5% of the Company's total revenues.
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 ("TDR"), Harbin First Bio-Engineering Company Limited ("First"), Heilongjiang Tianlong Pharmaceutical, Inc. ("Tianlong") and Peng Lai Jin Chuang Pharmaceutical Company ("Jin Chuang") 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 expectations of future growth or information regarding the recognition of AMI Diagnostic Kit as a National Innovation Project by NDRC. 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.
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SOURCE China Sky One Medical, Inc.