China Sky One Medical, Inc. (China Sky) reaffirmed its financial outlook for the full-year 2008. For the period, the company still expects revenue of $88 million - $90 million, and net income of $27 million - $28 million, due to continued strong organic growth and contribution from its recent acquisitions. The company also reaffirmed its 2008 gross margin estimate of about 77%, which it expects to improve once production capacity at its recently acquired facilities reaches normalized levels.
”Despite the global economic recession, we continue to experience strong demand for our products in China since they address common everyday ailments and are reasonably priced, with consumers only paying a small portion of the cost while the remainder is covered by healthcare insurance,” said Mr. Yan-Qing Liu, chairman and chief executive officer of China Sky. “Best-selling products such as our Slim Patch continue to do well since consumers are more likely to spend on weight loss products at the expense of other discretionary items. In addition, we have a high degree of customer loyalty, especially with our weight loss products, due to our successful advertising campaign in 2008.”
”Our pipeline of new drugs is robust and we continue to add new sales agents to keep up with the rapid development of the Chinese pharmaceutical market,” said Yan-Qing Liu. “We are currently looking at even more creative promotional and marketing strategies as we continue to launch a host of new and exciting products in 2009. Overall, we believe that we are very well positioned to execute on our growth strategy and look forward to continued strong financial performance.”