Goldman Sachs: New Drugs Will Swing Simcere Pharmaceuticals' Earnings

In a research report published today, Goldman Sachs said that new drug sales will likely be the swing factor for Simcere Pharmaceuticals'

earnings. In the report, Goldman Sachs commented, “Though we believe the launch of DMARD drug, Iremod, in January 2012 should be a major revenue driver for SCR in the long term, we do not expect a material earnings impact in the near to medium term. Valuation: we keep our 12-m Director's Cut-based TP unchanged at US$8.3 given minimal changes in SCR's 2012-14E average CROCI profile.” Goldman Sachs maintains its Neutral rating and $8.30 PT on Simcere, which closed yesterday at $8.68.