Nanjing Simcere Pharmaceutical Group (NYSE: SCR), a leading manufacturer and supplier of branded generic pharmaceuticals in China, reported on May 16 unaudited financial results for the first quarter ended March 31, 2007.

First Quarter 2007 Financial Results

Total revenues for the first quarter of 2007 were RMB 312.3 million(US$ 40.4 million), representing an increase of 31.7% from RMB 237.1 million reported for the same period in 2006;

Revenues from top five branded generic pharmaceutical products for the first quarter of 2007 totaled RMB 238.6 million (US$ 30.9 million), contributing 76.4% of the Company's total revenues and representing an increase of 19.9% from RMB 198.9 million for the same period in 2006;

Revenue from Endu, the Company's first anti-cancer drug launched in July 2006, totaled RMB 39.0 million (US$ 5.1 million) in the first quarter of 2007, representing 12.5% of the Company's total revenue.

Gross margin for the first quarter of 2007 was 81.7%, as compared to 78.8 % in the corresponding period a year ago. The higher gross margin was primarily due to the continued sales growth of higher margin products Bicun and Endu.

Research and development expenses in the first quarter of 2007 totaled RMB 13.7 million (US$ 1.8 million), an increase of 19.5% from RMB 11.5 million for the corresponding period a year ago;

Operating income was RMB 74.0 million (US$ 9.6 million) for the first quarter of 2007, as compared to RMB 40.0 million for the corresponding period of 2006.