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Oppenheimer Has Perform on Simcere Pharmaceutical Group


Oppenheimer & Co. is out with a research report on Simcere Pharmaceutical Group (NASDAQ: SPAR) and it has a Perform rating.

In a note to clients, Oppenheimer & Co. writes, "SCR reported an 8.9% yoy sales decline due to under-performance of Edaravone and "other branded generics" (-20%yoy), caused by pricing pressure and ongoing provincial drug tenders. Edaravone declined 5.3% yoy, while Endu grew nicely at 20% yoy, attributable to improving efficiency of the sales team. EPS of $0.10 missed Street's $0.15 estimate, due to higher selling and R&D expenses caused by lower than expected sales. Meanwhile, A/R days and inventory days increased significantly on both qoq and yoy basis. Management believes long-term volume growth opportunity exists for SCR with improved affordability but believe it will be after several quarters. We lower our 4Q11 revenue/GAAP EPADS estimates to RMB577M/$0.15. Maintain Perform."

Shares of SPAR are off 17 cents to $4.78, a loss of 3.45%.

Posted-In: Oppenheimer & Co.Analyst Color Analyst Ratings


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