Navigation Links
Simcere Pharmaceutical Group Reports Preliminary Unaudited Second Quarter 2012 Results
Date:8/10/2012

NANJING, China, Aug. 10, 2012 /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 preliminary unaudited financial results for the quarter ended June 30, 2012.

Highlights

  • Total revenue was RMB528.7 million (US$83.2 million) for the second quarter of 2012, compared to RMB546.4 million for the same period in 2011, representing a decrease of 3.2%. For the first six months of 2012, total revenue was RMB1,016.3 million (US$160.0 million), representing a decrease of 1.2% from RMB1,028.6 million for the same period in 2011.
  • Gross margin for the second quarter of 2012 was 83.9%, compared to 84.9% for the same period in 2011. For the first six months of 2012, gross margin was 83.0%, compared to 84.4% for the first six months of 2011.
  • Income from operations was RMB41.6 million (US$6.5 million) for the second quarter of 2012, compared to RMB79.9 million for the same period in 2011, representing a decrease of 48.0%. For the first six months of 2012, income from operations was RMB84.8 million (US$13.4 million), which represented a decrease of 22.6% from RMB109.6 million for the same period in 2011.
  • Net income attributable to Simcere was RMB27.0 million (US$4.2 million) for the second quarter of 2012, a decrease of 63.4% from RMB73.7 million for the same period in 2011. For the first six months of 2012, net income attributable to Simcere was RMB55.6 million (US$8.8 million), which represented a decrease of 45.3% from RMB101.6 million for the same period in 2011.
  • Mr. Jinsheng Ren, Chairman and Chief Executive Officer of Simcere Pharmaceutical Group said, "In the second quarter of 2012, Simcere's revenue and gross margin remained largely stable. While sales of edaravone, Endu and Sinofuan continued to grow compared with the first quarter of 2012, year-over-year sales performance was below our expectation. During the quarter, we increased our marketing efforts for branded generic drugs such as Zailin, Yingtaiqing and Biqi which helped drive sales growth in these key products but impacted profitability."

    "In the second quarter, we were encouraged by sales of our new Category 1 drug Iremod and Shanghai Celgen's biogeneric drug Qiangke," continued Mr. Ren. "We also received approval to initiate clinical studies for our oncology drug candidate Thiophenib and continue to see strong progress with the four additional new drug candidates currently under clinical trials."

    2012 Second Quarter Financial Results Total revenue for the second quarter of 2012 was RMB528.7 million (US$83.2 million), compared to RMB546.4 million for the same period in 2011, representing a decrease of 3.2%. For the first six months of 2012, total revenue was RMB1,016.3 million (US$160.0 million), representing a decrease of 1.2% from RMB1,028.6 million for the same period in 2011.

    The tables below set forth the Company's top 10 products by revenue for the three months ended June 30, 2012 and six months ended June 30, 2012:

    In ThousandsThree months ended June 30, 2012Three months ended June 30, 2011RMB USD % of totalRMB% of totalChangeProductsTherapeutic Arearevenue revenue Edaravone

    Neuroscience177,82527,99133.6%217,93439.90%

    (18.4%)Endu

    Oncology 66,77910,51112.6%70,02112.80%

    (4.6%Zailin

    Infectious Disease 61,6309,70111.7%43,7628.00%

    40.8%Yingtaiqing

    Inflammation 43,9286,9158.3%45,9098.40%

    (4.3%)Sinofuan

    Oncology 41,6836,5617.9%52,9749.70%

    (21.3%)Biqi

    Gastroenterology 26,8124,2205.1%19,6893.60%

    36.2%Jiebaishu

    Oncology 19,5073,0713.7%16,4383.00%

    18.7%Anqi

    Infectious Disease 14,8812,3422.8%18,0433.30%

    (17.5%)Anxin

    Infectious Disease 14,7752,3262.8%14,3712.60%

    2.8%Kechuanning

    Respiratory 10,6721,6802.0%10,4531.90%

    2.1%Others50,2427,9089.5%36,7696.80%

    36.6%Total528,73483,226100.0%546,363100.00%

    (3.2%)Six months ended June 30, 2012Six months ended June 30, 2011RMB USD % of totalRMB% of totalChangeProductsTherapeutic Arearevenue revenue Edaravone

    Neuroscience 338,72853,31833.3%406,66239.50%

    (16.7%)Endu

    Oncology 123,12819,38112.1%119,65611.60%

    2.9%Zailin

    Infectious Disease 121,66219,15012.0%105,24510.20%

    15.6%Sinofuan

    Oncology 80,97312,7468.0%82,3558.00%

    (1.7%)Yingtaiqing

    Inflammation 77,07512,1327.6%86,6358.40%

    (11.0%)Biqi

    Gastroenterology 48,7207,6694.8%41,8164.10%

    16.5%Jiebaishu

    Oncology 34,7345,4673.4%29,8202.90%

    16.5%Anqi

    Infectious Disease 30,6554,8253.0%34,9103.40%

    (12.2%)Anxin

    Infectious Disease 30,2894,7683.0%25,6682.50%

    18.0%Kechuanning

    Respiratory 24,5423,8632.4%23,9602.30%

    2.4%Others105,83716,65910.4%71,8387.10%

    47.3%Total1,016,343159,978100.0%1,028,565100.00%

    (1.2%)For more information about the above products, please visit our corporate website: www.simcere.com.Gross margin for the second quarter of 2012 was 83.9%, compared to 84.9% for the same period in 2011. For the first six months of 2012, gross margin was 83.0%, compared to 84.4% for the first six months of 2011.

    Research and development expenses for the second quarter of 2012 totaled RMB55.0 million (US$8.7 million), which represented an increase of 36.9% from RMB40.1 million for the same period in 2011. This increase was due primarily to the increased expenditure on on-going research and development projects, as well as a reduction of RMB5.5 million in government research and development grants recognized compared with the same period in 2011. As a percentage of total revenue, research and development expenses increased to 10.4% for the second quarter of 2012 from 7.3% for the same period in 2011. For the first six months of 2012, research and development expenses totaled RMB103.2 million (US$16.3 million), compared to RMB82.7 million for the same period in 2011.

    Sales, marketing and distribution expenses for the second quarter of 2012 were RMB291.4 million (US$45.9 million), which represented an increase of 0.9% from RMB288.9 million for the same period in 2011. As a percentage of total revenue, sales, marketing and distribution expenses increased to 55.1% for the second quarter of 2012 from 52.9% for the same period in 2011. This increase was due primarily to increased spending on promotional activities for branded generic pharmaceutical products, such as Zailin, Yingtaiqing and Biqi. For the first six months of 2012, sales, marketing and distribution expenses were RMB550.2 million (US$86.6 million), which represented a decrease of 0.6% from RMB553.3 million for the same period in 2011.General and administrative expenses were RMB55.7 million (US$8.8 million) for the second quarter of 2012, which represented a decrease of 25.3% from RMB74.7 million for the same period in 2011. As a percentage of total revenue, general and administrative expenses decreased to 10.5% for the second quarter of 2012 from 13.7% for the same period in 2011. For the first six months of 2012, general and administrative expenses were RMB120.8 million (US$19.0 million), which represented a decrease of 15.4% from RMB142.8 million for the same period in 2011.

    Share-based compensation expenses, which were 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 relevant employee was assigned to perform, totaled RMB2.7 million (US$0.4 million) for the second quarter of 2012. Share-based compensation expenses for the second quarter of 2011 were RMB7.8 million. The decrease was primarily due to the expiration of the first and second batches of restricted shares. For the first six months of 2012, share-based compensation expenses totaled RMB6.5 million (US$1.0 million), which represented a decrease of 56.7% from RMB15.1 million for the same period in 2011.

    Income from operations was RMB41.6 million (US$6.5 million) for the second quarter of 2012, representing a decrease of 48.0% from RMB79.9 million for the same period in 2011, which was primarily due to a decrease in revenue. The Company recorded other operating income of RMB20.0 million in the second quarter of 2011 in connection with the settlement with former shareholders of Jiangsu Quanyi Biological Technology Stock Co., Ltd ("Jiangsu Quanyi") regarding the Company's 2009 acquisition of a 37.5% equity interest in Jiangsu Quanyi. For the first six months of 2012, income from operations was RMB84.8 million (US$13.4 million), which represented a decrease of 22.6% from RMB109.6 million for the same period in 2011.

    Income tax expense for the second quarter of 2012 was RMB0.3 million (US$0.04 million), compared to income tax expense of RMB0.7 million for the same period in 2011. For the first six months of 2012, income tax expense was RMB2.9 million (US$0.5 million), compared to RMB5.8 million for the same period in 2011.

    Net income attributable to Simcere was RMB27.0 million (US$4.2 million) for the second quarter of 2012, compared to RMB73.7 million for the same period in 2011. Net margin, representing net income attributable to Simcere divided by total revenue, was 5.1% for the second quarter of 2012, compared to 13.5% for the same period in 2011. For the first six months of 2012, net income attributable to Simcere was RMB55.6 million (US$8.8 million), which represented a decrease of 45.3% from RMB101.6 million for the same period in 2011. Net margin for the first six months of 2012 was 5.5%, compared to 9.9% for the same period in 2011.

    Basic and diluted earnings per American Depository Share ("ADS") for the second quarter of 2012 were RMB0.50 (US$0.08) and RMB0.50 (US$0.08), respectively. Basic and diluted earnings per ADS for the first six months of 2012 were RMB1.03 (US$0.16) and RMB1.03 (US$0.16), respectively. One ADS represents two ordinary shares of the Company.

    As of June 30, 2012, the Company had cash, cash equivalents and restricted cash of RMB288.7 million (US$45.4 million), compared to RMB262.6 million as of December 31, 2011.

    Financial Information The preliminary unaudited condensed consolidated statements of income and balance sheets accompanying this press release have been prepared by management using U.S. GAAP. This preliminary financial information is not intended to fully comply with U.S. GAAP because it does not present all of the financial information and disclosures required by U.S. GAAP.

    Safe Harbor StatementThis 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 www.sec.gov. Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    Conference CallSimcere Pharmaceutical Group will host a conference call to discuss the Company's results for the second quarter of 2012 on Friday, August 10 at 8:00 a.m. Eastern Time (Friday, August 10 at 8:00 p.m. Beijing/Hong Kong time). The management team will be on the call to discuss the results for the second quarter of 2012 and to answer questions.

    To access the conference call, please dial:International toll:

    +65.6723.9381United States toll-free:

    +1.866.519.4004United States toll:

    +1.718.354.1231China Domestic toll:

    800.819.0121 China Domestic mobile toll:

    400.620.8038 Hong Kong toll:

    +852.2475.0994Please ask to be connected to Q2 2012 Simcere Pharmaceutical Group Earnings Conference Call and provide the following passcode: 15292591.

    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 www.simcere.com.

    Following the earnings conference call, an archive of the call will be available by dialing:United States toll-free:

    +1.866.214.5335United States toll:

    +1.718.354.1232The passcode for replay participants is 15292591. 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 GroupSimcere Pharmaceutical Group (NYSE: SCR, Simcere) is a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China. 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, cardiovascular disease, infectious diseases and pain. For more information about Simcere Pharmaceutical Group, please visit www.simcere.com.

    Investor and Media Contacts:
    Email: ir@simcere.comIn Nanjing:
    Yehong Zhang
    President
    Simcere Pharmaceutical Group
    Tel: 86-25-8556-6666 ext 8857

    In the United States:
    Cindy Zheng
    Brunswick Group
    Tel: 1-212-333-3810 

    In Beijing:
    Yue Yu
    Brunswick Group
    Tel: 86-10-5960-8600

     

    In Hong Kong:
    Joseph Lo Chi-Lun
    Brunswick Group
    Tel: 852-3512-5000   SIMCERE PHARMACEUTICAL GROUP
    PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT SHARE AND ADS DATA) Three months ended June 30,Six months ended June 30,201120122012201120122012RMBRMBUSDRMBRMBUSDProduct revenue

    546,363

    528,734

    83,2261,028,565

    1,016,343

    159,978Total revenue546,363528,73483,2261,028,5651,016,343159,978Cost of materials and production

    (82,761)

    (85,115)

    (13,398)(160,234)

    (172,953)

    (27,223)Gross profit463,602443,61969,828868,331843,390132,755Operating expenses:Research and development

    (40,147)

    (54,956)

    (8,650)(82,729)

    (103,242)

    (16,251)Sales, marketing and distribution

    (288,855)

    (291,366)

    (45,863)(553,250)

    (550,158)

    (86,598)General and administrative

    (74,661)

    (55,740)

    (8,774)(142,798)

    (120,822)

    (19,018)Other operating income20,000--20,00015,6502,463Income from operations

    79,939

    41,557

    6,541109,554

    84,818

    13,351Interest income

    1,310

    1,180

    1862,362

    2,041

    321Interest expense

    (10,001)

    (19,669)

    (3,096)(19,405)

    (39,862)

    (6,274)Foreign currency exchange gains (losses)

    2,142

    (546)

    (86)3,717

    (603)

    (95)Other  income

    1,099

    108

    177,522

    4,189

    659

     Equity in losses of equity method affiliated

    company

    (3,427)

    (2,383)

    (375)(6,599)

    (4,926)

    (775)Earnings  before income taxes  71,06220,2473,18797,15145,6577,187Income tax expense

    (711)

    (256)

    (40)(5,802)

    (2,893)

    (456)Net Income70,35119,9913,14791,34942,7646,731Less: Net loss attributable to the noncontrolling interest3,3556,9831,09910,247

    12,834

    2,020Net income attributable to Simcere73,706

    26,974

    4,246101,596

    55,598

    8,751Earnings  per share attributable to Simcere:Basic

    0.69

    0.25

    0.040.95

    0.51

    0.08Diluted

    0.67

    0.25

    0.040.92

    0.51

    0.08Earnings  per ADS attributable to Simcere:Basic

    1.38

    0.50

    0.081.90

    1.03

    0.16Diluted

    1.33

    0.50

    0.081.84

    1.03

    0.16Weighted average number of common shares: Basic

    106,903,665

    107,834,280

    107,834,280106,857,024

    108,136,224

    108,136,224Diluted

    110,578,606

    107,961,891

    107,961,891110,501,057

    108,329,408

    108,329,408 

     

    SIMCERE PHARMACEUTICAL GROUP
    PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (AMOUNTS EXPRESSED IN THOUSANDS) December 31,June 30,June 30,2011RMB2012RMB2012USDAssetsCurrent assetsCash, cash equivalents and restricted cash

    262,557

    288,671

    45,439Bills receivable

    814,822

    632,564

    99,569Accounts receivable, net

    462,050

    421,883

    66,407Inventories

    126,708

    124,392

    19,580Other current assets

    181,196

    185,411

    29,185Total current assets1,847,3331,652,921260,180Property, plant and equipment, net

    925,815

    905,436

    142,521Land use rights

    139,707

    138,106

    21,739Goodwill and intangible assets, net

    648,408

    631,394

    99,385Investments in and advance to an affiliated company91,355

    86,857

    13,672Other non-current assets

    81,499

    89,401

    14,072Total assets3,734,117

    3,504,115

    551,569LiabilitiesCurrent liabilitiesShort-term borrowings and current portion of long-term borrowings

    816,150

    755,000

    118,842Accounts payable

    52,191

    40,782

    6,419Bills payable

    28,379

    20,000

    3,148Other payables and accrued liabilities

    565,827

    429,067

    67,538Total current liabilities1,462,5471,244,849195,947Long-term borrowings, excluding current portion

    -

    2,000

    315Deferred tax liabilities

    46,248

    43,751

    6,887Other liabilities

    31,625

    32,141

    5,059Total liabilities1,540,4201,322,741208,208Shareholders' equitySimcere shareholders' equity Ordinary shares at par

    8,532

    8,401

    1,322Additional paid-in capital

    954,750

    899,850

    141,642Accumulated other comprehensive loss

    (104,608)

    (104,384)

    (16,431)Retained earnings

    1,197,507

    1,252,825

    197,202Total equity attributable to Simcere 2,056,1812,056,692323,735Noncontrolling interest137,516124,68219,626Total shareholders' equity2,193,6972,181,374343,361Commitments and contingenciesTotal liabilities and shareholders' equity 

    3,734,117

    3,504,115

    551,569Note: 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 = RMB6.3530 on June 30, 2012 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
    Copyright©2012 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Simcere Pharmaceutical Group to Announce First Quarter 2012 Financial Results on Wednesday, May 9, 2012
    2. Simcere Pharmaceutical Group Provides Notice of Annual General Meeting
    3. Simcere Pharmaceutical Group to Announce Second Quarter 2012 Financial Results on Friday, August 10, 2012
    4. Report Presents a Framework for Successful New Oncology Product Launches in the Pharmaceutical Sector
    5. Savient Pharmaceuticals to Hold First Quarter 2012 Financial Results Conference Call on Wednesday, May 9, 2012
    6. Pharmaceutical Industry Service Company Awarded The UKs Most Prestigious Business Accolade in Recognition of Outstanding Achievement in International Trade
    7. Auxilium Pharmaceuticals to Present at the Deutsche Bank 37th Annual Healthcare Conference
    8. Nouveau Life Pharmaceuticals (HRID) Contracts with U.S. Manufacturer to Produce New Female Supplement
    9. Thomson Reuters Launches New Mobile Oncology Decision Support Solution for R&D Pharmaceutical Leaders
    10. Amgen to Acquire Mustafa Nevzat, a Leading Privately Held Turkish Pharmaceutical Company
    11. BioElectronics Survey Indicates a Five-Fold Superior Pain Relief Compared to OTC Pharmaceuticals
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:6/23/2016)... Calif. , June 23, 2016 Any dentist ... many challenges of the current process. Many of them do ... of the technical difficulties and high laboratory costs involved. And ... to offer it at such a high cost that the ... it. Dr. Parsa Zadeh , founder of ...
    (Date:6/23/2016)... startling report released today, National Safety Council research shows ... plan to eliminate prescription opioid overdoses. Prescription Nation ... the worst drug crisis in recorded U.S. history, assigned a "Making ... , New Mexico , Tennessee ... states, three – Michigan , Missouri ...
    (Date:6/23/2016)... , June 23, 2016 Research ... MEMS Devices Medical Market Analysis 2016 - Forecast to 2022" ... The report contains up to date financial data ... analysis. Assessment of major trends with potential impact on the ... analysis of market segmentation which comprises of sub markets, regional ...
    Breaking Medicine Technology:
    (Date:6/24/2016)... ... ... a crisis. Her son James, eight, was out of control. Prone to extreme mood shifts ... upset him, he couldn’t control his emotions,” remembers Marcy. “If there was a knife ... and say he was going to kill them. If we were driving on the ...
    (Date:6/24/2016)... ... June 24, 2016 , ... Global law firm Greenberg Traurig, P.A. announced that ... chosen by their peers for this recognition are considered among the top 2 percent ... special honors as members of this year’s Legal Elite Hall of Fame: Miami ...
    (Date:6/24/2016)... CA (PRWEB) , ... June 24, 2016 , ... Comfort ... the American Cancer Society and the Road To Recovery® program to drive cancer patients ... seniors and other adults to ensure the highest quality of life and ongoing independence. ...
    (Date:6/24/2016)... ... June 24, 2016 , ... People across the U.S. ... magazine’s Code Talker Award, an essay contest in which patients and their families pay ... be presented at the 2016 National Society of Genetic Counselors (NSGC) Annual Education Conference ...
    (Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... ... Living, is proud to recognize Dr. Barry M. Weintraub as a prominent plastic ... most beautiful women in the world, and the most handsome men, look naturally ...
    Breaking Medicine News(10 mins):