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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2011
Commission Filing Number: 001-33398
Simcere Pharmaceutical Group
(Translation of registrant’s name into English)
No. 699-18 Xuan Wu Avenue,
Xuan Wu District, Nanjing
Jiangsu Province 210042
People’s Republic of China
(Address of principal executive offices)
Xuan Wu District, Nanjing
Jiangsu Province 210042
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): N/A
SIMCERE PHARMACEUTICAL GROUP
FORM 6-K
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Simcere Pharmaceutical Group |
||||
| By: | /s/ Yushan Wan | |||
| Name: | Yushan Wan | |||
| Title: | Acting Chief Financial Officer | |||
DATE: May 11, 2011
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Exhibit 99.1
SIMCERE PHARMACEUTICAL GROUP REPORTS UNAUDITED FIRST QUARTER 2011 RESULTS
NANJING,
CHINA, May 10, 2011 /PRNewswire-Asia/ — Simcere Pharmaceutical Group (“Simcere” or the “Company”) (NYSE:
SCR), a leading pharmaceutical company specializing in the development, manufacturing, and
marketing of branded and proprietary pharmaceuticals in China, today reported unaudited financial
results for the first quarter ended March 31, 2011.
Highlights
| • | Total revenue was RMB482.2 million (US$73.6 million) for the first quarter of 2011, which represented an increase of 5.1% from RMB458.7 million for the same period in 2010. | |
| • | Income from operations was RMB29.6 million (US$4.5 million) for the first quarter of 2011, compared to RMB30.9 million for the same period in 2010. | |
| • | Net income attributable to Simcere was RMB27.9 million (US$4.3 million) for the first quarter of 2011, which represented an increase of 36.2% from RMB20.5 million for the same period in 2010. | |
| • | Gross margin for the first quarter of 2011 was 83.9%, compared to 79.7% for the same period in 2010. |
Mr. Jinsheng Ren, Chairman and Chief Executive Officer of Simcere Pharmaceutical Group commented,
“In the first quarter of 2011, Simcere maintained strong gross margins, while realizing healthy
growth in both revenue and net income attributable to Simcere. As a result of the progress of our
sales team reorganization, we saw an encouraging upward trend in sales of our anti-tumor drugs,
including Endu, Sinofuan and Jiebaishu.”
Mr. Ren added, “Shanghai Celgen recently received new drug registration approval for Qiangke, its
Recombinant Human TNF Receptor-IgG Fusion Protein for Injection, and we are confident that this
drug will address a wide market demand when it becomes available.” In 2009, Simcere acquired
approximately 35% of the equity of Shanghai Celgen Bio-Pharmaceutical Co., Ltd. (“Shanghai
Celgen”).
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2011 First Quarter Financial Results
Total revenue for the first quarter of 2011 was RMB482.2 million (US$73.6 million), which
represented an increase of 5.1% from RMB458.7 million for the same period in 2010.
Revenue from edaravone injection products under the brand names Bicun and Yidasheng totaled
RMB188.7 million (US$28.8 million) for the first quarter of 2011, which was 39.1% of the Company’s
product revenue for the first quarter of 2011, an increase of 9.0% from RMB173.2 million for the
same period in 2010.
Revenue from Endu, the Company’s patented anti-cancer biotech product, amounted to RMB49.6 million
(US$7.6 million) in the first quarter of 2011, which was 10.3% of the Company’s product revenue for
the first quarter of 2011, an increase of 32.8% from RMB37.4 million for the same period in 2010.
Revenue from Sinofuan, a 5-FU sustained release implant for the treatment of cancer, amounted to
RMB29.4 million (US$4.5 million) for the first quarter of 2011, which was 6.1% of the Company’s
product revenue for the first quarter of 2011, an increase of 15.9% from RMB25.3 million for the
same period in 2010
Revenue from other branded generic products including Zailin and Yingtaiqing amounted to RMB214.4
million (US$32.7 million), which was 44.5% of the Company’s product revenue for the first quarter
of 2011, an increase of 10.0% from RMB194.9 million for the same period in 2010.
Gross margin for the first quarter of 2011 was 83.9%, increasing from 79.7% for the same period in
2010.
Research and development expenses for the first quarter of 2011 totaled RMB42.6 million (US$6.5
million), which represented an increase of 39.2% from RMB30.6 million for the same period in 2010.
This increase was primarily due to increased investment in research and development. As a
percentage of total revenue, research and development expenses were 8.8% for the first quarter of
2011, compared to 6.7% for the same period in 2010.
Sales, marketing and distribution expenses for the first quarter of 2011 were RMB264.4 million
(US$40.4 million), which represented an increase of 11.6% from RMB236.9 million for the same period
in 2010. As a percentage of total revenue, sales, marketing and distribution expenses were 54.8%
for the first quarter of 2011, compared to 51.6% for the same period in 2010. This increase was
primarily due to the expansion of our sales team and higher promotion expenses for new-to-market
drugs.
General and administrative expenses were RMB68.1 million (US$10.4 million) for the first quarter of
2011, which represented an increase of 1.3% from RMB67.2 million for the same period in 2010. As a
percentage of total revenue, general and administrative expenses decreased to 14.1% for the first
quarter of 2011 from 14.7% for the same period in 2010.
Share-based compensation expense, which was 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 employee was assigned to perform, totaled RMB7.3 million (US$1.1 million) for
the first quarter of 2011. Share-based compensation expenses for the first quarter of 2010 were
RMB8.0 million.
Income from operations was RMB29.6 million (US$4.5 million) for the first quarter of 2011, compared
to RMB30.9 million for the same period in 2010.
Income tax expense for the first quarter of 2011 was RMB5.1million (US$0.8 million), compared to
RMB1.3 million for the same period in 2010.
Net income attributable to Simcere was RMB27.9 million (US$4.3 million) for the first quarter of
2011, compared to RMB20.5 million for the same period in 2010. Net margin was 5.8% for the first
quarter of 2011, compared to 4.5% for the first quarter of 2010.
Basic and diluted earnings per American Depository Share (“ADS”) for the first quarter of 2011 were
RMB0.52
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(US$0.08) and RMB0.50 (US$0.08) respectively. One ADS represents two ordinary shares of the
Company.
As of March 31, 2011, the Company had cash, cash equivalents and restricted cash of RMB236.0
million (US$36.0 million), compared to RMB278.7 million as of December 31, 2010.
Financial Statements
The unaudited condensed consolidated statements of income and balance sheets accompanying this
press release have been prepared by management using U.S. GAAP. These financial statements are not
intended to fully comply with U.S. GAAP because they do not present all of the financial statements
and disclosures required by U.S. GAAP.
Safe Harbor Statement
This 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
and the section under “Financial Outlook” 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 Call
Simcere Pharmaceutical Group will host a conference call to discuss the Company’s results for the
first quarter of 2011 on Tuesday, May 10 at 8 a.m. Eastern Time (Tuesday, May 10, at 8 p.m.
Beijing/Hong Kong time). The management team will be on the call to discuss the results for the
first quarter of 2011 and to answer questions.
To access the conference call, please dial:
United States toll-free:
|
1.800.573.4840 | |
International:
|
1.617.224.4326 | |
China Telecom:
|
10.800.120.2655/10.800.130.0399/10.800.152.1490 | |
China Netcom:
|
10.800.852.1490/10.800.712.2655 | |
China 400 (for mobile users)
|
400.881.1630 / 400.881.1629 | |
Hong Kong:
|
852.3002.1672 |
Please ask to be connected to Q1 2011 Simcere Pharmaceutical Group Earnings Conference Call and
provide the following passcode: 26446178. 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:
|
+1.888.286.8010 | |
International:
|
+1.617.801.6888 |
The passcode for replay participants is: 26589448. 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 Group
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Simcere Pharmaceutical Group (“Simcere”) (NYSE: SCR) 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.com
Email: ir@simcere.com
In Nanjing:
|
In the United States: | |
Yehong Zhang
|
Kate Tellier | |
President
|
Brunswick Group | |
Simcere Pharmaceutical Group
|
Tel: 1-212-333-3810 | |
Tel: 86-25-8556-6666 ext 8811 |
||
In Beijing:
|
In Hong Kong: | |
Yue Yu
|
Joseph Lo Chi-Lun | |
Brunswick Group
|
Brunswick Group | |
Tel: 86-10-5960-8600
|
Tel: 852-3512-5000 |
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SIMCERE PHARMACEUTICAL GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT SHARE AND ADS DATA)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT SHARE AND ADS DATA)
| Three months ended March 31, | ||||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| RMB | RMB | USD | ||||||||||
Product revenue |
457,648 | 482,202 | 73,638 | |||||||||
Other revenue |
1,021 | — | — | |||||||||
Total revenue |
458,669 | 482,202 | 73,638 | |||||||||
Cost of materials and production |
(93,096 | ) | (77,473 | ) | (11,831 | ) | ||||||
Gross profit |
365,573 | 404,729 | 61,807 | |||||||||
Operating expenses: |
||||||||||||
Research and development |
(30,592 | ) | (42,582 | ) | (6,503 | ) | ||||||
Sales, marketing and distribution |
(236,879 | ) | (264,395 | ) | (40,376 | ) | ||||||
General and administrative |
(67,240 | ) | (68,137 | ) | (10,405 | ) | ||||||
Income from operations |
30,862 | 29,615 | 4,523 | |||||||||
Interest income |
1,296 | 1,052 | 160 | |||||||||
Interest expense |
(4,965 | ) | (9,404 | ) | (1,436 | ) | ||||||
Foreign currency exchange gains |
67 | 1,575 | 240 | |||||||||
Other income |
6,423 | 981 | ||||||||||
Equity in losses of equity method affiliated
companies |
(4,450 | ) | (3,172 | ) | (484 | ) | ||||||
Earnings before income taxes |
22,810 | 26,089 | 3,984 | |||||||||
Income tax expense |
(1,316 | ) | (5,091 | ) | (777 | ) | ||||||
Net Income |
21,494 | 20,998 | 3,207 | |||||||||
Less: Net (income) loss attributable to the
redeemable noncontrolling interest and
noncontrolling interest |
(1,012 | ) | 6,892 | 1,052 | ||||||||
Net income attributable to Simcere |
20,482 | 27,890 | 4,259 | |||||||||
Earnings per share attributable to Simcere: |
||||||||||||
Basic |
0.19 | 0.26 | 0.04 | |||||||||
Diluted |
0.18 | 0.25 | 0.04 | |||||||||
Earnings per ADS attributable to Simcere: |
||||||||||||
Basic |
0.37 | 0.52 | 0.08 | |||||||||
Diluted |
0.36 | 0.50 | 0.08 | |||||||||
Weighted average number of common shares: |
||||||||||||
Basic |
110,031,322 | 106,809,870 | 106,809,870 | |||||||||
Diluted |
112,802,481 | 110,467,225 | 110,467,225 | |||||||||
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SIMCERE PHARMACEUTICAL GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN THOUSANDS)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN THOUSANDS)
| December 31, | March 31, | March 31, | ||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| RMB | RMB | USD | ||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash, cash equivalents and restricted cash |
278,716 | 236,012 | 36,042 | |||||||||
Accounts and bills receivable, net |
884,738 | 942,417 | 143,918 | |||||||||
Inventories |
89,732 | 101,501 | 15,500 | |||||||||
Other current assets |
135,301 | 146,385 | 22,354 | |||||||||
Total current assets |
1,388,487 | 1,426,315 | 217,814 | |||||||||
Property, plant and equipment, net |
866,262 | 869,947 | 132,851 | |||||||||
Land use rights |
142,910 | 142,109 | 21,702 | |||||||||
Goodwill and intangible assets, net |
658,139 | 649,971 | 99,258 | |||||||||
Investments in and advance to affiliated companies |
121,220 | 118,491 | 18,095 | |||||||||
Other assets |
41,234 | 40,928 | 6,250 | |||||||||
Total assets |
3,218,252 | 3,247,761 | 495,970 | |||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Short-term borrowings and current portion of long-term borrowings |
360,000 | 499,950 | 76,348 | |||||||||
Accounts payable |
49,638 | 46,226 | 7,059 | |||||||||
Other payables and accrued liabilities |
596,208 | 487,102 | 74,386 | |||||||||
Total current liabilities |
1,005,846 | 1,033,278 | 157,793 | |||||||||
Long-term borrowings, excluding current portion |
19,306 | — | — | |||||||||
Deferred tax liabilities |
68,811 | 63,079 | 9,633 | |||||||||
Other liabilities |
22,593 | 22,851 | 3,490 | |||||||||
Total liabilities |
1,116,556 | 1,119,208 | 170,916 | |||||||||
Redeemable noncontrolling interest |
47,453 | 48,504 | 7,407 | |||||||||
Shareholders’ equity |
||||||||||||
Simcere shareholders’ equity |
||||||||||||
Ordinary shares at par |
8,597 | 8,604 | 1,314 | |||||||||
Additional paid-in capital |
948,469 | 955,777 | 145,958 | |||||||||
Accumulated other comprehensive loss |
(97,512 | ) | (98,968 | ) | (15,114 | ) | ||||||
Retained earnings |
1,019,118 | 1,047,008 | 159,890 | |||||||||
Total equity attributable to Simcere |
1,878,672 | 1,912,421 | 292,048 | |||||||||
Noncontrolling interest |
175,571 | 167,628 | 25,599 | |||||||||
Total shareholders’ equity |
2,054,243 | 2,080,049 | 317,647 | |||||||||
Commitments and contingencies |
||||||||||||
Total liabilities, redeemable noncontrolling
interest and shareholders’ equity |
3,218,252 | 3,247,761 | 495,970 | |||||||||
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Note: 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 = RMB6.5483 on March 31, 2011 as set forth in the H.10
statistical release of the Federal Reserve Board of the United States. 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.
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