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3SBio Inc. Announces Unaudited First Quarter 2009 Results
Date:5/19/2009

e first quarter of 2009, an increase of 16.8% from GAAP operating expenses of RMB36.4 million (US$5.2 million) for the same period of last year. Increase in operating expenses was largely driven by the increased sales & marketing expenses as 3SBio continued necessary marketing efforts.

    -- Research and development ("R&D") cost.  GAAP R&D cost for the first
       quarter of 2009 was RMB2.5 million (US$0.4 million), or 3.6% of net
       revenue, compared to RMB2.8 million (US$0.4 million), or 5.0% of net
       revenue for the same period of last year. The decline in R&D cost for
       the first quarter of 2009 was due to the conclusion of several major
       trials in the last quarter of 2008.
    -- Sales, marketing and distribution expenses. GAAP sales, marketing and
       distribution expenses for the first quarter of 2009 were
       RMB32.9 million (US$4.8 million), compared to RMB25.6 million
       (US$3.7 million) for the same period of last year. This represented a
       slight increase to 48.0% of net revenue for the first quarter of 2009,
       compared to 46.2% of net revenue for the same period of last year. The
       increase was primarily attributable to higher sales activities in
       general, continued investment in building the TPIAO brand and EPIAO
       penetration of the Oncology market.
    -- General and administrative expenses. GAAP general and administrative
       expenses for the first quarter of 2009 were RMB7.1 million
       (US$1.0 million), representing a decrease of 11.3% from general and
       administrative expenses of RMB8.0 million (US$1.1 million) for the same
       period of 2008. This marked a decline to 10.3% of net revenue for the
       first quarter of 2009, compared to 14.4% of net revenue for the first
       quarter of 2008.

* Please refer to "Non-GAAP Financial Measures: Reconciliation of GAAP to Non-GAAP" section below for specific
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SOURCE 3SBio Inc.
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