Simcere Pharmaceutical Group
) reported fourth quarter 2012 earnings of 6 cents per American
Depositary Share (ADS), a penny below the Zacks Consensus
We note that each ADS represents two ordinary shares of Simcere
Revenues at Simcere Pharma came in at $86.7 million in the fourth
quarter of 2012, up 5.7% year over year. Revenues in the reported
quarter were lower than the Zacks Consensus Estimate of $88
Sales of branded generic drug, Zailin decreased 5% to $12.5
million. Yintaiqing also posted a decline of 14% from the fourth
quarter of 2011. Both these drugs were adversely affected by
Sales of Anxin (anti-infection) were flat year over year as the
hospital listing of this drug was impacted by the government's
restriction on use of antibiotics. Products like Edaravone
injection increased 7.1% year over year. Sales of cancer
drug Endu increased 18.6% in local currency. Sales of Biqi
recovered and posted year-over-year growth of 66.5%.
However, sales of oncology products were impacted by pricing
pressure and reported a decline in the fourth quarter of
2012. Cancer drug Sinofuan (declined 10.6% in terms of
local currency) performed disappointingly during the fourth
Gross margin declined to 81.1% during the final quarter of 2012
from 82.3% in the prior-year quarter.
Simcere Pharma's research and development (R&D) expenses
decreased 14.7% in local currency. Sales, marketing and
distribution expenses decreased 1.0% in local currency. General
and administrative expenses at Simcere Pharma declined 13.8% in
(MLY): Get Free Report
NOVO-NORDISK AS (NVO): Free Stock Analysis
SIMCERE PHARMAC (SCR): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
To read this article on Zacks.com click here.
For 2012, total revenue came in at $334.3 million, up 2.1% from
2011 and in line with the Zacks Consensus Estimate. Full year
earnings of 17 cents per ADS were well below the Zacks Consensus
Estimate of 27 cents.
Simcere expects to face challenging market conditions in 2013,
including pricing pressure from the government. Simcere has
identified biologics and antibodies as key market opportunities.
Simcere Pharma currently carries a Zacks Rank #3 (Hold). Right
) look better placed. All three carry a Zacks Rank #2 (Buy).