FAST NEWS: Simcere’s revenue jumps on rising innovative drug sales
The latest: Simcere Pharmaceutical Group Ltd. (2096.HK) said on Thursday it expects to report its revenue grew between 24% and 26.3% to between 3.35 billion yuan ($468 million) and 3.41 billion yuan in the first half of 2023. Its net profit jumped from 64 million yuan to between 2.25 billion yuan and 2.31 billion yuan during the period.
Looking up: Simcere attributed the revenue gain to strong growth in its innovative drug sales. The company’s disposal of interests in some subsidiaries during the period also resulted in a one-off pre-tax gain of about 789 million yuan, which boosted profits.
Take Note: Of the company’s first-half net profit, 1.15 billion yuan, or nearly half, came from non-operational gains in the fair value of its stake in 3D Medicines (1244.HK).
Digging Deeper: Founded in 1995, Simcere develops, makes and sells oncology and cardiovascular drugs. The company was listed in the U.S. in 2007, but delisted in 2013, before re-listing in Hong Kong in 2020. It had six drugs on the market at the end of last year and nearly 60 more in its pipeline. The company’s oral Covid drug Xiannuoxin received conditional approval in China in January this year. But prospects for the drug don’t look strong since the peak of Covid infections has passed. What’s more, the drug will have to compete with a growing number of similar products coming into the market.
Market Reaction: Simcere’s shares fell on Friday, closing down 1.6% at HK$7.55 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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