SOURCE: Skystar Bio-Pharmaceutical Company

January 24, 2007 09:30 ET

Skystar Bio-Pharmaceutical Signs Agreement With TNI-Penta for Research and Development of New Veterinary Drugs

XI'AN, CHINA -- (MARKET WIRE) -- January 24, 2007 -- Skystar Bio-Pharmaceutical (OTCBB: SKBI), a leading bio-pharmaceutical company in China, today announced that it has entered into an agreement with TNI-Penta for research and development of new veterinary pharmaceutical products. The new products are to be based on the efficacy of Methionine Enkephalin (MEK) for use in veterinary medicine.

Skystar had previously announced entering into a Letter of Intent for this joint venture with TNI-Penta. TNI-Penta's executive team, lead by Dr. Nicholas Plotnikoff, met with Skystar's executive management and top research team in Xi'an, China in early January and signed a three-year agreement whereby TNI-Penta will provide MEK Active Pharmaceutical Ingredients (API), requisite technology, intellectual property rights, and technical and consulting services to Skystar to help in performing tests in a controlled environment to evaluate the safety, duration of immunity, minimum effective dosage and protective efficacy of the newly developed drugs containing MEK API. Once the products have successfully passed all testing stages, Skystar will file for government approval for mass production and sale throughout China. TNI-Penta will receive an average of 9% of the gross revenues realized from sale of any new product developed through this joint venture.

Dr. Nicholas Plotnikoff, Chairman and CEO of TNI-Penta, commented, "Both Dr. Huang, President of Penta Biotech, and I are very excited and eagerly awaiting the results of the initial testing phase of the potential applications of our cytokine met-enkephalin to a variety of veterinary pharmaceutical uses. We're optimistic about the success of the initial round of testing and are looking forward to starting the clinical trials quickly."

Weibing Lu, Chairman and CEO of Skystar Bio-Pharmaceutical, commented, "This agreement paves the way for Skystar to become the leading veterinary bio-pharmaceutical company in China. With Dr. Plotnikoff and his team's input and assistance, we are seeking to revolutionize our industry by developing new and highly effective products using methods and technologies never before used in this area."

If you would like to be added to Skystar Bio-Pharmaceutical's investor email list please contact Zack Noory with Nexus Investor Relations at znoory@nexusir.com.

About TNI-Penta

TNI-Penta is a joint venture between TNI Pharmaceuticals, Inc. and Penta Biotech, Inc. and is led by renowned scientist Dr. Nicholas Plotnikoff. Methionine Enkephalin (MEK), developed and patented by TNI Pharmaceuticals, Inc., inhibits growth of tumorous cells and stimulates the immune system. Penta Biotech, Inc., led by Dr. John Huang, specializes in the custom synthesis of peptides, organic compounds and other pharmaceutical chemicals in compliance with current Good Manufacturing Practices and is a supplier of Active Pharmaceutical Ingredients (API). TNI-Penta's Chairman and CEO, Dr. Nicholas Plotnikoff's principal research interests are in the areas of psychoneuroimmunology with special emphasis on stress hormones and cytokines (enkephalins-endorphins). His current research has been focused on the clinical effects of methionine enkaphalin in the treatment of cancer and AIDS patients. He also cooperated with Hualan Chen, who is Chief Leader of Animal Influenza Key Opening Lab of Harbin Veterinary Research Institute of Chinese Academic of Agricultural Sciences, council member of avian diseases branch of Chinese Association of Animal Science and Veterinary Medicine, in the research of Avian Flu Vaccine.

About Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical Company is a China-based producer and distributor of vaccines, microorganisms and 100% organic herbal additives to cure and prevent disease in poultry, livestock, birds and pets. The company's product line consists of more than 70 state-of-the-art products with over 50 additional products in the developmental stage. One of the prominent products currently in the development stage is a feed additive and vaccine for Avian Influenza. Skystar has formed strategic sales distribution networks in 27 provinces and regions throughout China. Skystar recently completed construction of new state-of-the-art Bio-Pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit www.skystarbio-pharmaceutical.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Contact Information

  • FOR FURTHER INFORMATION:

    AT SKYSTAR BIO-PHARMACEUTICAL:
    Scott Cramer
    Director - Investor Relations
    407-645-4433
    Email Contact

    AT NEXUS INVESTOR RELATIONS:
    Zack Noory
    Managing Partner
    310-606-2018
    Email Contact