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3SBio Inc. Announces Unaudited Fourth Quarter and Fiscal Year 2007 Results
Date:2/20/2008

r and fiscal

year 2007 was mainly attributable to research and development expenses

associated with TPIAO's phase IV post-marketing clinical tests, the

development of our EPIAO pipeline products and the continued

development of other pipeline products.

-- Sales, Marketing and Distribution Expense: Our sales, marketing and

distribution expense increased by 27.4% to RMB22.7 million (US$3.1

million) in the fourth quarter 2007 from RMB17.8 million for the same

period in 2006. This increase was primarily attributed to increases in

marketing and promotional costs related to our TPIAO products and the

higher sales activities in general. Sales, marketing and distribution

expense as a percentage of total net revenues decreased to 49.7% in

the fourth quarter 2007 from 50.6% for the same period in 2006. Our

sales, marketing and distribution expense increased 37.4% to RMB84.2

million (US$11.5 million) for 2007 from RMB61.3 million for 2006. This

increase was primarily attributable to higher marketing costs, staff

costs and bonuses as a result of the increase in headcount. Sales,

marketing and distribution expense as a percentage of total net

revenues decreased to 46.7% in 2007 from 48.0% in 2006.

-- General and Administrative Expense: Our general and administrative

expense increased by 111.4% to RMB7.4 million (US$1.0 million) in the

fourth quarter 2007 from RMB3.5 million for the same period in 2006.

General and administrative expense as a percentage of total net

revenues increased to 16.2% in the fourth quarter 2007 from 9.9% for

the same period in 2006. Our general and administrative expense

increased 49.8% to RMB18.4 million (US$2.5 million) in 2007 from

RMB12.3 million in 2006. General and administrative expenses as a

percentage of n
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SOURCE 3SBio Inc.
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