SKBI Skystar Bio Pharmaceutical: WBB Securities believes the unrestricted use of antimicrobials for food animals in countries like China will be seen as a strategic national threat (10.53)WBB Securities notes SKBI is a manufacturer and distributor of vaccines and medicines for poultry, livestock and domestic pets in China. Firm says antibiotic resistance is a growing worldwide threat. In 2008, only 20%of the 35.8 mln pounds of antimicrobial drugs sold and distributed in the U.S. were used in humans. The remaining 80% were used in food animals to promote growth, prevent disease and cure disease. Firm says the situation got so bad that in July 2010, the FDA created guidance on the judicious use of medically important human antibiotics in food-producing animals. Firm believes the unrestricted use of antimicrobials for food animals in countries like China will be seen as a strategic national threat, and antibiotic companies will become subject to severe restrictions. They believe China will impose more severe restrictions on antibiotics for food animals and those restrictions will dampen SKBI's investment potential. Firm reits their Sell Short and $5 tgt.
