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ShangPharma Announces Third Quarter 2012 Results
Date:11/20/2012

ling us to provide fully integrated biologics, drug discovery and development services by accessing multiple leading technology platforms at one location.  Furthermore, we expect that the GMP manufacturing suite within this facility will be ready and operational by early 2013." 

William Dai, Chief Financial Officer, added, "During a difficult third quarter for global pharmaceutical and biotech companies, we focused on easing margin pressure by optimizing our scientific team and reducing operational structural costs in areas like capital expenditure and administration. Our optimization plan is helping to improve margins and profitability, while keeping a high ratio of senior-to-junior scientific staff to ensure that we maintain our competitive advantage in the CRO market."

To help management and investors gain a better understanding of ShangPharma's operating performance, the Company presents certain non-GAAP measures, each of which excludes expenses relating to or the effect of share-based compensation. See "About Non-GAAP Financial Measures" and "Reconciliation of Unaudited GAAP to Non-GAAP Financial Data" below for more information about the non-GAAP financial measures included in this press release.

Beginning in the first quarter 2012, in accordance with Accounting Standards Update 2011-05, the Company is presenting other comprehensive income and its components in the unaudited condensed consolidated statement of comprehensive income.
Other comprehensive income mainly consists of currency translation adjustments relating to translating some of our subsidiaries' financial statements from their functional currency to our reporting currency, which is in the United States dollar.
The functional currency of our main subsidiaries in China is the RMB.

Third Quarter 2012 ResultsNet revenues were $31.9 million, an increase of 10.6% from $28.8 million in the third quarter of 2011. Higher volumes from the Company's top customers
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SOURCE ShangPharma Corporation
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