Simcere Pharmaceutical Group Acquires a 51% Stake in Boda Pharmaceutical...( Transaction Strengthens Simcere's...),Health

Transaction Strengthens Simcere's Leading Position in China's Stroke

Management Market

NANJING, China, Sept. 28 /Xinhua-PRNewswire/ -- Simcere Pharmaceutical Group (NYSE: SCR; "Simcere"), the manufacturer of the innovative anti-cancer medication Endu and a leading manufacturer and supplier of branded generic pharmaceuticals in China, today announced that it has entered into a definitive agreement to acquire a 51% stake in Boda Pharmaceutical Co., Ltd ("Boda") for a total of RMB111 million (US$14.80 million) in cash.

Simcere introduced a neuroprotective stroke management medication, an injectable edaravone, to China in 2004 under the brand name Bicun. As one of the only two injectable edaravone products in China, Bicun has taken the first-to-market advantage and has commanded a leading market share and a strong growth rate. After three years of academic promotion and clinical treatment, Bicun has been broadly accepted by Chinese doctors. It is the leading stroke management medication in the market. From 2004 to 2006, sales of Bicun enjoyed a CAGR of 209.5%. Its sales of RMB110 million in the second quarter of 2007 was a record quarterly sales figure for a single product in Simcere and was an increase of 134% from the corresponding period in 2006.

Boda is a fast-growing manufacturer of injectable stroke management medication. Yidashen, the other injectable edaravone product in the market, is a leading drug of the company. Through this acquisition, Simcere, together with Boda, will own the entire injectable edaravone market in China. Simcere and Boda will work together to further raise the awareness and recognition of injectable edaravone for stroke treatment via academic cooperation and marketing programs. In addition, complementary distribution networks and stronger marketing resources will enhance the penetration of injectable edaravone in more hospitals nationwide and will continue to increase its market shar
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