China Sky One Medical (NASDAQ: CSKI) announced that production has started at the Peng Lai Jin Chuang Company facility. China Sky One finalized the acquisition of Jin Chuang last month, paying $7.1 million in cash and stock to gain control of the company.

Jin Chuang represents an unusual situation because it boasted a portfolio of twenty approved drugs and was building a manufacturing plant, but the company had not yet begun to market its drugs. Jin Chuang had been distributing pharmaceutical, medicinal and diagnostic products in China.

The portfolio of approved products includes TCM treatments such as Oyster Shell Calcium Tablets for the treatment of osteoporosis, and Naftoipidil Dispersible Tablets for the treatment of benign prostatic hyperplasia. Other products are treatments for colds, cardiovascular disease, and depression.

China Sky One Medical expects Jin Chuang to contribute $3-$5 million in revenues during fiscal 2008, and to add between $1 million and $1.5 million in net income. Because these additions were part of China Sky One’s most recent forecast, the company reaffirmed its guidance. In September, China Sky One said it would achieve revenues of $89 million and net income of $27.5 million in 2008.