Simcere Pharmaceutical Group ( SCR ) recently received
encouraging news from the Chinese State Food and Drug
Administration (SFDA). The Chinese SFDA granted the good
manufacturing practice (GMP) certification to the influenza vaccine
production facility at Jiangsu Simcere Vaxtec Bio-Pharmaceutical
Co. Ltd. A GMP is a production and testing procedure that ensures
the quality of the product.
Simcere Vaxtec is a subsidiary of Simcere Pharma. Simcere Pharma
holds a 52.5% equity interest in Simcere Vaxtec. Simcere Vaxtec now
plans to recommence its influenza vaccine production.
Meanwhile, Simcere Pharma announced that the company's executive
vice president, Mr. Hong Zhao recently resigned due to personal
reasons. The resignation will be effective from Apr 1, 2013.
Earlier this month, Simcere Pharma announced that the company's
board has received a buyout proposal from Mr. Jinsheng Ren, New
Good Management Limited, Assure Ahead Investments Limited and its
As per the proposal, the conglomerate intends to acquire the
entire outstanding ordinary shares of Simcere Pharma, for $9.56 per
American Depositary Share (ADS) or $4.78 per ordinary share in cash
(1 ADS = 2 shares).
In response, Simcere Pharma's board has formed a special
committee of independent directors, headed by Mr Alan Au, to
consider the proposal. The special committee has retained Shearman
& Sterling LLP as its legal counsel for the proposed
transaction. The proposal is under consideration.
We note that Simcere is a major player in the oncology market in
China with drugs such as Endu and Sinofuan in its product
portfolio. Simcere Pharma boasts of associations with leading
players in the pharmaceutical space such as Merck &
Company Inc. ( MRK ) and
Bristol-Myers Squibb Company ( BMY ) to expand its
Simcere Pharma currently carries a Zacks Rank #3 (Hold). Right
now, Athersys Inc. ( ATHX ) looks better
placed in the pharma space with a Zacks Rank #1 (Strong Buy).ATHERSYS INC (ATHX): Free Stock Analysis ReportBRISTOL-MYERS (BMY): Free Stock Analysis ReportMERCK & CO INC (MRK): Free Stock Analysis
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