Navigation Links
Simcere Pharmaceutical Group Reports Unaudited Fourth Quarter and Fiscal Year 2009 Results
Date:3/15/2010

NANJING, March 16 /PRNewswire-Asia/ -- Simcere Pharmaceutical Group ("Simcere" or the "Company") (NYSE: SCR), a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded generic and proprietary pharmaceuticals in China, today reported unaudited financial results for the quarter and the fiscal year ended December 31, 2009.

    Highlights

    -- Total revenue was RMB539.4 million (US$79.0 million) for the fourth
       quarter of 2009, compared to RMB466.9 million for the same period in
       2008, representing sequential growth of 15.5%. For the full year of
       2009, total revenue was RMB1,850.0 million (US$271.0 million), which
       represented an increase of 6.3% from RMB1,741.1 million for the full
       year of 2008.

    -- Gross margin for the fourth quarter of 2009 was 83.1%, compared to
       83.1% for the same period in 2008. For the full year of 2009, gross
       margin was 82.6%, increased from 81.6% for the full year of 2008.

    -- Income from operations was RMB44.9 million (US$6.6 million) for the
       fourth quarter of 2009, a decrease of 38.2% from RMB72.7 million for
       the same period in 2008. For the full year of 2009, income from
       operations was RMB172.9 million (US$25.3 million), which represented a
       decrease of 51.6% from RMB357.0 million for the full year of 2008.

    -- Net income attributable to Simcere was RMB17.7 million (US$2.6 million)
       for the fourth quarter of 2009, a decrease of 65.9% from RMB51.7
       million for the same period in 2008. For the full year of 2009, net
       income was RMB119.5 million (US$17.5 million), which represented a
       decrease of 65.9% from RMB350.2 million for the full year of 2008.

"We are pleased to end 2009 with positive top-line growth while maintaining steady gross margin," commented Mr. Jinsheng Ren, Chairman and Chief Executive Officer of Simcere. "In particular, for the fourth quarter, we were encouraged by the strong performance of Edavarone as well as increased sales of Endu. However, the combination of higher sales and marketing expenses associated with the promotion of new drugs and increased research and development expenses impacted our operating income."

"We are confident that 2010 will be a year of growth for Simcere," continued Mr. Ren. "As national and provincial drug reimbursement lists are expected to be implemented in the second half of the year, we are optimistic that a number of our key products will experience greater market demand. In addition, we expect to receive multiple new drug approvals in 2010 which will further strengthen Simcere's product portfolio."

Mr. Ren concluded: "Last month we were pleased to announce that Zanamivir received SFDA approval and that industry veteran, Dr. Yehong Zhang has joined Simcere as president. These important announcements highlight our commitment to strengthening Simcere's management team while continuously investing in research and development to increase our competitiveness for the mid-to-long term."

2009 Fourth Quarter and Full Year Financial Results

Total revenue for the fourth quarter of 2009 was RMB539.4 million (US$79.0 million), compared to RMB466.9 million for the same period in 2008, representing sequential growth of 15.5%. For the full year of 2009, total revenue was RMB1,850.0 million (US$271.0 million), which represented an increase of 6.3% from RMB1,741.1 million for the full year of 2008.

Revenue from Edaravone injection products under the brand names Bicun and Yidasheng totaled RMB211.7 million (US$31.0 million) for the fourth quarter of 2009, which was 39.3% of the Company's product revenue for the fourth quarter of 2009, and represented an increase of 9.8% from RMB192.7 million for the same period in 2008. For the full year of 2009, revenue from Bicun and Yidasheng totaled RMB745.4 million (US$109.2 million), which represented an increase of 14.5% from RMB651.2 million for the full year of 2008.

Revenue from Endu, the Company's patented anti-cancer biotech product, amounted to RMB34.0 million (US$5.0 million) in the fourth quarter of 2009, which was 6.3% of the Company's product revenue for the fourth quarter of 2009 and represented a decrease of 41.6% from RMB58.1 million for the same period in 2008. For the full year of 2009, revenue from Endu totaled RMB124.2 million (US$18.2 million), which represented a decrease of 48.1% from RMB239.4 million for the full year of 2008.

Revenue from Sinofuan, a 5-FU sustained release implant for the treatment of cancer, amounted to RMB30.6 million (US$4.5 million) for the fourth quarter of 2009, which was 5.7% of the Company's product revenue for the fourth quarter of 2009, and represented an increase of 54.8% from RMB19.8 million for the same period in 2008. For the full year of 2009, revenue from Sinofuan totaled RMB126.3 million (US$18.5 million), which represented an increase of 205.1% from RMB41.4 million for the full year of 2008.

Revenue from other first-to-market products including Jiebaishu, a nedaplatin product and Anxin, a biapenem injection, amounted to RMB10.0 million (US$1.5 million), which was 1.9% of the Company's product revenue for the fourth quarter of 2009, and represented an increase of 70.0% from RMB5.9 million for the same period in 2008. For the full year of 2009, revenue other first-to-market products totaled RMB37.7 million (US$5.5 million), which represented an increase of 104.6% from RMB18.4 million for the full year of 2008.

Revenue from other branded generic products including Zailin and Yingtaiqing, amounted to RMB201.9 million (US$29.5 million), which was 37.5% of the Company's product revenue for the fourth quarter of 2009, and represented an increase of 6.1% from RMB190.3 million for the same period in 2008. For the full year of 2009, revenue from other branded generic products totaled RMB753.1 million (US$110.4 million), which represented a decrease of 4.2% from RMB786.4 million for the full year of 2008.

Gross margin for the fourth quarter of 2009 was 83.1%, compared to 83.1% for the same period in 2008. For the full year of 2009, gross margin was 82.6%, increased from 81.6% for the full year of 2008.

Research and development expenses for the fourth quarter of 2009 totaled RMB50.1 million (US$7.3 million), which represented an increase of 47.6% from RMB34.0 million for the same period in 2008. This increase was primarily due to the launch of new research and development projects and increased research and development headcount as a result of the Company's continued expansion of its research and development activities. As a percentage of total revenue, research and development expenses were 9.3% for the fourth quarter of 2009, compared to 7.3% for the same period in 2008. For the full year of 2009, research and development expenses totaled RMB133.0 million (US$19.5 million), compared to RMB86.1 million for the full year of 2008, representing year-over-year growth of 54.5%.

Sales, marketing and distribution expenses for the fourth quarter of 2009 were RMB297.0 million (US$43.5 million), which represented an increase of 31.5% from RMB225.8 million for the same period in 2008. As a percentage of total revenue, sales, marketing and distribution expenses were 55.1% for the fourth quarter of 2009, compared to 48.4% for the same period in 2008. This increase was primarily due to the costs of restructuring the Endu sales team and increased promotion expenses to market new drugs such as Anxin and Sinofuan. For the full year of 2009, sales, marketing and distribution expenses were RMB999.5 million (US$146.4 million), which represented an increase of 27.7% from RMB783.0 million for the full year of 2008.

General and administrative expenses were RMB56.3 million (US$8.3 million) for the fourth quarter of 2009, which represented an increase of 1.3% from RMB55.6 million for the same period in 2008. As a percentage of total revenue, general and administrative expenses decreased to 10.4% for the fourth quarter of 2009 from 11.9% for the same period in 2008. For the full year of 2009, general and administrative expenses were RMB222.1 million (US$32.5 million), which represented an increase of 14.4% from RMB194.2 million for the full year of 2008.

Share-based compensation expense, which was allocated to research and development expenses, sales, marketing and distribution expenses, and general and administrative expenses, based on the nature of the work that the employee was assigned to perform, totaled RMB6.0 million (US$0.9 million) for the fourth quarter of 2009. Share-based compensation expenses for the fourth quarter of 2008 were RMB5.7 million. For the full year of 2009, share-based compensation expenses totaled RMB23.7 million (US$3.5 million), which represented a decrease of 7.3% from RMB25.5 million for the full year of 2008.

Income from operations was RMB44.9 million (US$6.6 million) for the fourth quarter of 2009, which represented a decrease of 38.2% from RMB72.7 million for the same period in 2008. For the full year of 2009, income from operations was RMB172.9 million (US$25.4 million), which represented a decrease of 51.6% from RMB357.0 million for the full year of 2008.

Income tax expense for the fourth quarter of 2009 was RMB7.2 million (US$1.1 million), compared to RMB13.0 million for the same period in 2008. The decrease in income tax expense for the fourth quarter of 2009 was primarily due to the decrease of the net income and the entitlement of the preferential tax treatment. For the full year of 2009, income tax expense was RMB16.0 million (US$2.3 million) compared to RMB49.3 million for the full year of 2008.

Net income attributable to Simcere was RMB17.7 million (US$2.6 million) for the fourth quarter of 2009, compared to RMB51.7 million for the same period in 2008. Net income margin was 3.3% for the fourth quarter of 2009, compared to 11.1% for the fourth quarter of 2008. For the full year of 2009, net income was RMB119.5 million (US$17.5 million), which represented a decrease of 65.9% from RMB350.2 million for the same period in 2008. Net margin for the full year of 2009 was 6.5% as compared to 20.1% for the full year of 2008.

Basic and diluted earnings per American Depository Share ("ADS") for the fourth quarter of 2009 were RMB0.32 (US$0.05) and RMB0.31 (US$0.05), respectively. Basic and diluted earnings per ADS for the full year of 2009 were RMB2.08 (US$0.30) and RMB2.05 (US$0.30), respectively. One ADS represents two ordinary shares of the Company.

As of December 31, 2009, the Company had cash, cash equivalents and restricted cash of RMB458.1 million (US$67.1 million), compared to RMB813.8 million as of December 31, 2008.

Financial Statements

The unaudited condensed consolidated statements of income and balance sheets accompanying this press release have been prepared by management using U.S. GAAP. These financial statements are not intended to fully comply with U.S. GAAP because they do not present all of the financial statements and disclosures required by U.S. GAAP.

The unaudited financial statements are subject to the completion of the Company's normal year end closing procedures including the annual impairment review of goodwill and the purchase price allocation in respect of the Company's acquisitions in 2009 and are subject to change.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, the quotations from management in this press release contain forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Further information regarding these and other risks is included in Simcere's filings with the U.S. Securities and Exchange Commission at http://www.sec.gov . Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Conference Call

Simcere Pharmaceutical Group will host a conference call to discuss the Company's results for the fourth quarter and full year of 2009 on Tuesday, March 16, at 8:00 a.m. Eastern Time (Tuesday, March 16 at 8:00 p.m. Beijing/Hong Kong time). The management team will be on the call to discuss the results for fourth quarter and full year of 2009 and to answer questions.


    To access the conference call, please dial:

    United States toll-free dial-in number:             +1 800 901 5213
    United States toll/International dial-in number:    +1 617 786 2962
    South China toll-free/Chine Telecom dial-in number: +86 10 800 130 0399
    North China toll-free/China Telecom dial-in number: +86 10 800 152 1490
    South China toll-free/China Netcom dial-in number:  +86 10 800 852 1490
    Hong Kong dial-in number:                           +852 3002 1672

Please ask to be connected to Simcere's Q4 2009 earnings call and provide the following passcode: 65611658. Simcere will also broadcast a live audio webcast of the conference call. The broadcast will be available by visiting the "Investor Relations" section of the Company's web site at http://www.simcere.com .

Following the earnings conference call, an archive of the call will be available by dialing:


    United States toll-free dial-in number:             +1 888 286 8010

United States toll/International dial-in number: +1 617 801 6888

The passcode for replay participants is: 88577131. The telephone replay also will be archived on the "Investor Relations" section of the Company's web site for seven days following the earnings announcement.

About Simcere Pharmaceutical Group

Simcere Pharmaceutical Group ( SCR, Simcere) is a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded generic and proprietary pharmaceuticals in China. In recent years, Simcere has been focusing its strategy on the development of innovative pharmaceuticals and first-to-market generics, and has introduced an innovative anti-cancer medication Endu, a first-to-market medication Sinofuan, and first-to-market generics such as Bicun and Anxin. Simcere manufactures and sells antibiotics, anti-cancer medication, stroke management medication and biopharmaceutical drugs such as vaccines. Simcere concentrates its research and development efforts on the treatment of diseases with high incidence and/or mortality rates and for which there is a clear demand for more effective pharmacotherapy such as cancer, strokes, orthopaedics and infectious diseases. For more information about Simcere Pharmaceutical Group, please visit http://www.simcere.com .

    For more information, please contact:

    Investor and Media Contacts:
     Email: ir@simcere.com

    In Nanjing:
     Frank Zhao
     Chief Financial Officer
     Simcere Pharmaceutical Group
     Tel:   +86-25-8556-6666 x8818

    In Beijing:
     Ruirui Jiang
     Brunswick Group
     Tel:   +86-10-6566-2256

    In the United States:
     Kate Tellier
     Brunswick Group
     Tel:   +1-212-333-3810

    In Hong Kong:
     Joseph Lo Chi-Lun
     Brunswick Group
     Tel:   +852-3512-5000


                         SIMCERE PHARMACEUTICAL GROUP
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
         (AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT SHARE AND ADS DATA)

                                                 Three months ended
                                                     December 31,
                                           2008         2009          2009
                                            RMB          RMB           USD

    Product revenue                       466,849      538,074        78,828
    Other revenue                              55        1,279           187
    Total revenue                         466,904      539,353        79,015
    Cost of materials and production      (78,880)     (90,979)      (13,328)
    Gross profit                          388,024      448,374        65,687

    Operating expenses:
    Research and development expenses     (33,969)     (50,129)       (7,344)
    Sales, marketing and distribution
     expenses                            (225,772)    (296,990)      (43,509)
    General and administrative
     expenses                             (55,631)     (56,339)       (8,254)
    Income from operations                 72,652       44,916         6,580

    Interest income                         4,198        1,458           214
    Interest expense                         (998)      (3,446)         (505)
    Foreign currency exchange
     (losses)/gains                        (1,348)          32             5
    Other income                               --        1,880           275
    Equity in losses of equity method
     affiliated companies                      --       (1,022)         (150)
    Earnings before income taxes           74,504       43,818         6,419

    Income tax expense                    (12,961)      (7,199)       (1,055)
    Net Income                             61,543       36,619         5,364

    Less: Net income attributable to
     the noncontrolling interest           (9,832)     (18,960)       (2,778)
    Net income attributable to
     Simcere                               51,711       17,659         2,586

    Earnings per share attributable
     to Simcere:
    Basic                                    0.42         0.16          0.02
    Diluted                                  0.42         0.16          0.02

    Earnings per ADS attributable to
     Simcere:
    Basic                                    0.83         0.32          0.05
    Diluted                                  0.83         0.31          0.05

    Weighted average number of common
     shares:
    Basic                             124,491,009  111,042,270   111,042,270
    Diluted                           124,491,009  113,458,171   113,458,171


                                                     Year ended
                                                     December 31,
                                           2008         2009          2009
                                            RMB          RMB           USD

    Product revenue                     1,736,832    1,836,585       269,061
    Other revenue                           4,311       13,386         1,961
    Total revenue                       1,741,143    1,849,971       271,022
    Cost of materials and production     (320,882)    (322,456)      (47,240)
    Gross profit                        1,420,261    1,527,515       223,782

    Operating expenses:
    Research and development expenses     (86,089)    (132,981)      (19,482)
    Sales, marketing and distribution
     expenses                            (782,960)    (999,519)     (146,430)
    General and administrative
     expenses                            (194,233)    (222,118)      (32,540)
    Income from operations                356,979      172,897        25,330

    Interest income                        34,302        8,861         1,298
    Interest expense                       (4,693)     (12,126)       (1,777)
    Foreign currency exchange
     (losses)/gains                        39,879          382            56
    Other income                            1,104        2,971           435
    Equity in losses of equity method
     affiliated companies                      --       (1,022)         (150)

    Earnings before income taxes          427,571      171,963        25,192


    Income tax expense                    (49,285)     (16,030)       (2,348)
    Net Income                            378,286      155,933        22,844

    Less: Net income attributable to
     the noncontrolling interest          (28,135)     (36,429)       (5,337)
    Net income attributable to
     Simcere                              350,151      119,504        17,507

    Earnings per share attributable
     to Simcere:
    Basic                                    2.80         1.04          0.15
    Diluted                                  2.80         1.02          0.15

    Earnings per ADS attributable to
     Simcere:
    Basic                                    5.61         2.08          0.30
    Diluted                                  5.60         2.05          0.30

    Weighted average number of common
     shares:
    Basic                             124,921,934  115,099,258   115,099,258
    Diluted                           125,005,803  116,604,919   116,604,919



                         SIMCERE PHARMACEUTICAL GROUP
               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                       (AMOUNTS EXPRESSED IN THOUSANDS)

                                       December 31,  December 31, December 31,
                                            2008         2009         2009
                                             RMB          RMB          USD
    Assets
    Current assets
    Cash, cash equivalents and
     restricted cash                       813,766      458,145       67,119
    Accounts and bills receivables,
     net                                   748,997      751,921      110,157
    Inventories                             95,948       99,355       14,556
    Other current assets                    49,048       98,851       14,481
    Total current assets                 1,707,759    1,408,272      206,313
    Property, plant and equipment,
     net                                   463,059      744,713      109,101
    Land use rights                        114,624      146,158       21,412
    Goodwill and intangible assets,
     net                                   453,455      924,018      135,369
    Investments in and advance to
     affiliated companies                               121,865       17,853
    Other assets                            39,325       58,035        8,503
    Total assets                         2,778,222    3,403,061      498,551

    Liabilities
    Current liabilities
    Short-term borrowings and current
     installments of long-term debt          6,000       76,000       11,134
    Accounts payables                       25,219       41,439        6,071
    Bills payables                              --      110,810       16,234
    Other payables and accrued
     liabilities                           303,794      477,725       69,987
    Total current liabilities              335,013      705,974      103,426
    Long-term debt, excluding current
     installments                           62,000      122,685       17,973
    Deferred tax liabilities                59,358      147,782       21,650
    Other liabilities                       20,529       21,561        3,159
    Total liabilities                      476,900      998,002      146,208

    Equity
    Simcere shareholders' equity
    Ordinary shares at par                   9,624        8,716        1,277
    Additional paid-in capital           1,505,252    1,170,687      171,506
    Accumulated other comprehensive
     loss                                  (82,130)     (43,886)      (6,429)
    Retained earnings                      820,279      939,783      137,679
    Total Simcere shareholders'
     equity                              2,253,025    2,075,300      304,033
    Noncontrolling interest                 48,297      329,759       48,310
    Total equity                         2,301,322    2,405,059      352,343
    Commitments and contingencies
    Total liabilities and equity         2,778,222    3,403,061      498,551

    Note: The conversions of Renminbi (RMB) into United States dollars (USD)
          as at the reporting dates are based on the noon buying rate of
          USD1.00 = RMB6.8259 on December 31, 2009 as set forth in the H. 10
          statistical release of the Federal Reserve Board. No representation
          is intended to imply that the RMB amounts could have been, or could
          be, converted, realized or settled into U.S. dollars at that rate on
          the reporting dates.

SOURCE Simcere Pharmaceutical Group

Back to top

RELATED LINKS
http://www.simcere.com

'/>"/>

SOURCE Simcere Pharmaceutical Group
Copyright©2010 PR Newswire.
All rights reserved


Related medicine news :

1. Simcere Pharmaceutical Group Reports Unaudited Third Quarter 2009 Results
2. Simcere Pharmaceutical Group to Acquire China Manufacturing License for Rosuvastatin
3. Simcere Pharmaceutical Group Invested Company Obtains Production License for H1N1 Flu Vaccine
4. Simcere Announces Strategic Partnership with Sun Yat-Sen University Cancer Center
5. Simcere Pharmaceutical Group Reports Unaudited Second Quarter 2009 Results and Announces Share Repurchase
6. Simcere Pharmaceutical Group to Announce 2009 Second Quarter Earnings on Monday, August 17, 2009
7. Simcere Pharmaceutical Group Files Annual Report on Form 20-F
8. Simcere Pharmaceutical Group Seeking Approval to Manufacture and Sell Influenza Drug zanamivir
9. Simcere Pharmaceutical Group to Participate in Goldman Sachs China Investment Frontier Conference 2008
10. Simcere Pharmaceutical Group Reports Unaudited Second Quarter 2008 Results
11. Simcere Pharmaceutical Group Announces SFDA Approval of First-to-Market Generic Biapenem Injection Anxin
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/13/2016)... , ... February 13, 2016 , ... Many individuals looking ... protein for a multitude of reasons. IsoPasta by Isolator Fitness has delved into ... once more, but without the high-carb repercussions. IsoPasta has 30 grams of protein ...
(Date:2/13/2016)... ... 2016 , ... When an Au Pair comes all the way around the world ... for and they are often worried things won’t go well. More often than not, however, ... Au Pair of the Year winner’s all commented how their Au Pairs have become a ...
(Date:2/12/2016)... LA (PRWEB) , ... February 12, 2016 , ... The ... St. Landry and Evangeline Parishes. The purpose of these scholarships is to encourage ... encourage those individuals to seek employment within these two parishes. , “We have ...
(Date:2/12/2016)... ... February 12, 2016 , ... Each year, the American Physical ... in Anaheim, CA at the Anaheim Convention Center. Almost 10,000 physical therapists across the ... products in action, learn more about their chosen field and network with their colleagues. ...
(Date:2/12/2016)... ... February 12, 2016 , ... Itopia, a leader in cloud ... Clarity Intelligence Platform (CIP) into Cielo®, a discovery, migration and cloud orchestration engine. ... their small and medium business (SMB) clients. , In recent years, ...
Breaking Medicine News(10 mins):
(Date:2/12/2016)... SAN DIEGO and SEOUL, ... -- Silicon Biosys­tems Menarini and Macrogen, Inc. today ... clinical assays and innovative procedures for precision medicine ... to combine Silicon Biosystems, DEPArray™ digital-sorting technology with ... development of tests certified under the Clinical Laboratory ...
(Date:2/12/2016)... , Feb. 12, 2016  Apellis ... completed a $47.1 million Series D preferred ... Asset Management, Hillhouse Capital Group and venBio ... Venture Investments, AJU IB Investment, and Epidarex ... used to further advance clinical trials in ...
(Date:2/11/2016)... 2016 Stem cells are primitive cells found ... and the capacity to differentiate into mature cell types ... the first mouse embryonic stem cells were derived from ... that the first culturing of embryonic stem cells from ... produced until 2006 As a result of these discoveries, ...
Breaking Medicine Technology: