Simcere Pharmaceutical Group Reports Third Quarter 20...(respondingperiod in 2006. For the first ...),Health

Revenue from other branded generic products for the third quarter of 2007 totaled RMB163.3 million (US$21.8 million), contributing 50.7% of total revenue, representing an increase of 5.4% from RMB154.9 million in the same period in 2006. For the first nine months of 2007, revenue from other generic products totaled RMB516.4 million (US$68.9 million), representing 53.5% of total product revenue, compared to RMB525.8 million or 75.9% of product revenue in the corresponding period in 2006.

Research and development expenses in the third quarter of 2007 totaled RMB19.3 million (US$2.6 million) compared to RMB7.0 million for the corresponding period a year ago. The increase in research and development expenses was primarily related to the Phase IV clinical study for Endu, the expansion of the Company's research and development department and other ongoing research projects. For the first nine months of 2007, research and development expenses totaled RMB52.4 million (US$7.0 million), compared to RMB23.2 million for the same period in 2006.

Sales and marketing expenses were RMB146.6 million (US$19.6 million) for the third quarter of 2007, an increase of 41.5% from RMB103.6 million for the corresponding period a year ago. For the first nine months of 2007, sales and marketing expenses were RMB441.7 million (US$59.0 million), an increase of 38.6% from RMB318.8 million in the first nine months of 2006. The increase was primarily due to increased marketing expenses associated with the promotion of Simcere's first-to-market product Bicun and the new drug Endu.

General and administrative expenses were RMB38.2 million (US$5.1 million) for the third quarter of 2007, representing an increase of 7
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