Simcere Pharmaceutical Group Reports Unaudited First Quarter 20...(quarter of2009 representing 36.5% of the...)

Revenue from other first-to-market products, Jiebaishu, a nedaplatin product, Sinofuan, a 5-FU sustained release implant for the treatment of cancer, and Anxin, a biapenem injection for the treatment of serious infections launched in the fourth quarter of 2008, totaled RMB32.8 million (US$4.8 million) in the first quarter of 2009.

Revenue from other branded generic products totaled RMB207.7 million (US$30.4 million) in the first quarter of 2009, representing 47.6% of the Company's product revenue for the quarter and an increase of 19.5% from RMB173.8 million for the corresponding period in 2008. Gross margin for the first quarter of 2009 was 82.5%, compared to 83.2% for the corresponding period in 2008.

Research and development expenses for the first quarter of 2009 totaled RMB25.0 million (US$3.7 million), an increase of 40.9% from RMB17.8 million for the corresponding period in 2008. The increase was primarily due to the recognition of an upfront payment to Epitomics Inc. under the agreement for the co-development and production of humanized rabbit monoclonal antibody therapeutics for multiple tumors. As a percentage of total revenue, research and development expenses were 5.7% for the first quarter of 2009, compared to 4.5% for the corresponding period in 2008.

Sales marketing and distribution expenses for the first quarter of 2009 were RMB219.8 million (US$32.2 million), an increase of 33.6% from RMB164.5 million for the corresponding period in 2008. As a percentage of total revenue, sales, marketing and distribution expenses were 49.7% for the first quarter of 2009, compared to 41.7% for the corresponding period in 2008. The increase was primarily due to reduced sales and marketing activities in the first quarter
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