Second Quarter profits of Simcere Pharma spike 91%
Earlier on Tuesday, Simcere Pharmaceuticals announced a hike of 91% in its net income for the second quarter. The Chinese company partly attributed this rise to the increase in sales for the cancer drugs Endu and Sinofuan and decline in expenses for sales, marketing, and distribution.
In the three months that ended on June 30, Simcere made revenues of 73.7 million yuan ($11.4 million), or 21 cents per American Depositary Share, which was a sizeable increase from a net income of 38.6 million yuan, or 10 cents per American Depositary Share, in last year’s quarter.
Revenues increased less than 1% from 544.6 million yuan in 2010 to 546.4 million yuan ($84.4 million).
While sales of Endu and Sinofuan catapulted 30% to 70 million yuan, and 26% to 53 million yuan, respectively, expenses for marketing, sales, and distribution plummeted 10% to 288.9 million yuan.
Profit margins for a certain brand of generics including Zailin, used to teat infection, were hit due to alterations in the pricing policies by the government, said the company.
In Tuesday morning trading, the US-traded company shares experienced a jump of19 cents, or 2 percent, to $9.69.