China Sky One Medical (NSDQ: CSKI) received SFDA approval for two new products. Sodium ferulate by injection, a TCM found in the root of Angelica sinensis, is indicated for cardiovascular disease. The drug inhibits the gathering of hematoblasts and stretches blood vessels in order to protect cardiac muscles. Doxofylline by injection treats asthma and bronchitis through its bronchodilator effect. It also suppresses coughing.

China Sky One estimates that sodium ferulate will produce $1 million in revenue and doxofylline will add $500,000 annually, once production begins in early 2009.

Traditionally, the majority of China Sky One’s revenues have come from externally applied products such as patches, drops and creams. The injected drugs represent a departure from that model.

China Sky One is very active on the new product front, announcing approvals or deals or development news almost every week. Yesterday, the company said it was acquiring a breast lesion drug from Harbin Medical University, a drug that the two entities developed in collaboration.

In September, the company upped its full-year 2008 revenue guidance to $88- $90 million. Net income is expected to total between $27 and $28 million. Those figures represent an increase of 80% over its year-earlier performance. In 2007, the company reported profits of $15 million on revenues of $49 million.

Even though China Sky One is growing at a phenomenal rate, its PE ratio remains below 6 – and that is based on trailing 12 month results. Its forward PE, based on 2009 expectations, is closer to 3.

After the news, China Sky One’s stock price rose modestly to $8.12. At that price, the company has a market capitalization of $122 million.