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Simcere Pharmaceutical Group Reports Unaudited Second Quarter 2008 Results
Date:8/5/2008

m Endu totaled RMB126.9 million (US$18.5 million), an increase of 27.8% compared to RMB99.3 million in the first six months of 2007.

Revenue from first-to-market Edavarone injection products under the brand names Bicun and Yidasheng totaled RMB147.6 million (US$21.5 million) in the second quarter of 2008, an increase of 34.3% compared to RMB109.9 million for the same period in 2007. For the first six months of 2008, revenue from Bicun and Yidasheng totaled RMB299.7 million (US$43.7 million), an increase of 57.5% compared to RMB190.3 million in the first six months of 2007.

Revenue from other first-to-market products, Jiebaishu and Sinofuan, totaled RMB10.1 million (US$1.5 million) in the second quarter of 2008. For the first six months of 2008, revenue from other first-to-market products totaled RMB13.4 million (US$2.0 million). There was no revenue generated from these two products for the same period in 2007.

Revenue from other branded generic products totaled RMB215.0 million (US$31.3 million) in the second quarter of 2008, an increase of 34.2% compared to RMB160.2 million for the same period in 2007. For the first six months of 2008, revenue from other branded generic products totaled RMB388.8 million (US$56.7 million), an increase of 10.1% compared to RMB353.1 million in the first six months of 2007.

Gross margin for the second quarter of 2008 decreased to 81.7%, as compared to 83.7% for the same period in 2007. The decrease was primarily due to the growth in other branded generics as a percentage of our total sales and the increased cost of some raw materials. For the first six months of 2008, gross margin decreased slightly to 82.4% compared to 82.7% for the first six months of 2007.

Research and development expenses for the second quarter of 2008 totaled RMB13.2 million (US$1.9 million), a decrease of 31.7% from RMB19.3 million for the corresponding period a year ago. As a percentage of total revenue, research and developme
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SOURCE Simcere Pharmaceutical Group
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