FAST NEWS: Simcere Pharma New Co-CEO Sends Investors Scurrying
The latest: Simcere Pharmaceutical Group Ltd. (2096.HK) announced late Wednesday that executive director Tang Renhong has been appointed as Co-CEO and will assist Chairman and CEO Ren Jinsheng in leading the company’s R&D business.
Looking up: Tang has a PhD in molecular cell biology from Nanyang Technological University in Singapore and nearly 12 years of experience working in drug company R&D and management, including tenures at Shanghai Shengdi Pharmaceutical and AstraZeneca Investment (China). His expertise and experience may help to improve the company’s new drug development efforts.
Take Note: The appointment of a co-CEO at a listed company could be considered a sensitive move, requiring the same responsibilities to be assigned to two executives. Tang’s elevation from Ren’s subordinate to his equal could cause internal tensions at the company.
Digging Deeper: Founded in 1995, Simcere Pharmaceutical is a drug company focused on R&D, manufacture and sales of oncology and cardiovascular drugs. The company was listed in the U.S. in 2007, delisted in 2013, and then listed on the Hong Kong Stock Exchange in 2020. Its net profit jumped 126% last year, mainly due to rapid revenue growth for Sanbexin, a self-developed innovative drug used to treat ischemic stroke and launched in 2020. It is also developing a Covid-19 oral drug, SIM0417, which has been approved for clinical trials by China’s National Medical Products Administration.
Market Reaction: The company’s shares fell as much as 5.6% in early trading on Thursday, before rebounding slightly to close down 3.8% at HK$9.42 at the midday break. The stock now trades at the lower end of its 52-week price range.
Translation by Jony Ho
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