Chinese drug manufacturer Simcere Pharmaceutical Group (SCR: News ) Monday reported a 82% decline in net income for the third quarter, impacted negatively by higher expenses.
Net income for the quarter attributable to the company was RMB 16.43 million or RMB 0.14 per share, much lower than RMB 91.16 million or RMB 0.72 per share in the prior-year quarter. In US dollars, net income attributable to Simcere was $2.41 million or $0.02 per share for the most recent quarter.
Earnings per American depository shares, or ADS, plunged to RMB 0.29, or US$0.04, from RMB 1.44 in the year-ago quarter.
On an average, four analysts polled by Thomson Reuters expected earnings of US$0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Total third-quarter revenues increased slightly to RMB 443.7 million or US$65.0 million from RMB 443.4 million a year earlier. Analysts estimated revenues of US$69.09 million for the quarter.
Commenting on the results, Jinsheng Ren, chairman and chief executive officer, said, "Our sales and gross profit margins remained stable this quarter. However, lower sales in Endu, impacted by the restructuring of the sales team, and an increase in sales and marketing expenses for new to market drugs like Anxin and Sinofuan, caused a significant decrease in operating income."
Product revenues slipped to RMB 439.02 million from RMB 441.21 million in the prior-year quarter. Within this, revenues from Endu, Simcere's patented anti-cancer biotech product, amounted to RMB 21.6 million, or US$3.2 million, down 60.2% from RMB 54.4 million for the same period in 2008.
Source: rttnews.com
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