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Simcere Pharmaceutical Group Reports Preliminary Unaudited First Quarter 2013 Results
Date:5/9/2013

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8.4%For more information about the above products, please visit our corporate website: www.simcere.comGross margin for the first quarter of 2013 was 79.2%, compared to 82.0% for the same period in 2012. The decrease was primarily due to the percentage decrease in sales of drugs with higher gross margins and certain fixed overhead costs incurred before the commercial production of influenza vaccine products.

Research and development expenses for the first quarter of 2013 totaled RMB44.9 million (US$7.2 million), which represented a decrease of 7.0% from RMB48.3 million for the same period in 2012. The decrease was primarily due to the completion of development of the Company's influenza vaccine product and its transition to commercial manufacturing. As a percentage of total revenue, research and development expenses decreased to 8.5% for the first quarter of 2013 from 9.9% for the same period in 2012.

Sales, marketing and distribution expenses for the first quarter of 2013 were RMB259.6 million (US$41.8 million), which represented an increase of 0.3% from RMB258.8 million for the same period in 2012. As a percentage of total revenue, sales, marketing and distribution expenses decreased to 49.1% for the first quarter of 2013 from 53.1% for the same period in 2012.

General and administrative expenses were RMB64.0 million (US$10.3 million) for the first quarter of 2013, which represented a decrease of 1.6% from RMB65.1 million for the same period in 2012. As a percentage of total revenue, general and administrative expenses decreased to 12.1% for the first quarter of 2013 from 13.3% for the same period in 2012.

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