3 Sbio (SSRX) research, news, and more from GeoInvesting

Company description

Thu, 17 Apr 2008 04:00:00 GMT

3SBio Inc. is a leading, fully integrated biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, primarily in China.

Comments & Business Outlook

Fri, 24 May 2013 04:00:00 GMT

SHENYANG, CHINA, May 24, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, announced today that, at an extraordinary general meeting held today (the "EGM"), the Company's shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger dated February 8, 2013, among Decade Sunshine Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands("Parent"), Decade Sunshine Merger Sub, an exempted company with limited liability incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Parent ("Merger Sub"), and the Company, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of April 24, 2013 (the "Amended Merger Agreement"), pursuant to which Merger Sub will be merged with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the "Merger"), and to authorize and approve all transactions contemplated by the Amended Merger Agreement, including the Merger.

Approximately 91.38% of the Company's total outstanding ordinary shares and voting restricted shares were voted in person or by proxy at the EGM. Of these shares voted in person or by proxy at the EGM, approximately 87.20% were voted in favor of the proposal to authorize and approve the Amended Merger Agreement and the transactions contemplated thereby, including the Merger, and approximately 87.20% were voted in favor of the proposal to authorize and approve the directors of the Company to do all things necessary to give effect to the Amended Merger Agreement.

The parties expect to complete the Merger as soon as practicable, subject to the satisfaction or waiver of the conditions set forth in the Amended Merger Agreement. Upon completion of the Merger, the Company will become a privately-held company and its American depository shares will no longer be listed on the NASDAQ Global Market.

Going Private News

Wed, 24 Apr 2013 04:00:00 GMT

SHENYANG, China, April 24, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that it has entered into an amendment (the "Amendment") to its previously announced agreement and plan of merger dated as of February 8, 2013, by and among Decade Sunshine Limited ("Parent"), Decade Sunshine Merger Sub ("Merger Sub") and the Company (the "Merger Agreement", and the Merger Agreement as so amended, the "Amended Merger Agreement"), pursuant to which Merger Sub will be merged with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the "Merger"). The Amendment follows the revised "going private" proposal from Dr.Jing Lou , the Company's chairman and chief executive officer ("Dr. Lou"), and CPEChina Fund, L.P., a China-focused private equity fund associated with CITIC Private Equity Funds Management Co. Ltd. ("CITIC PE", and together with Dr. Lou, the "Buyer Consortium") to increase the merger consideration under the Merger Agreement that was received and announced by the Company on April 22, 2013. If completed, the Merger would result in the Company becoming a privately-held company and its American Depository Shares ("ADSs") would no longer be listed on the NASDAQ Global Market ("NASDAQ").

Pursuant to the Amendment, the merger consideration payable to holders of ordinary shares, par value $0.0001 per share, of the Company (the "Shares"), and holders of ADSs, under the Merger Agreement is increased from $2.20 per Share, or $15.40per ADS, to $2.3857 per Share, or $16.70 per ADS. The increase in the merger consideration represents an approximately 8.4% premium to the original merger consideration under the Merger Agreement, 9.9% premium to the closing price of the ADSs on April 19, 2013, the last trading day prior to the Company's announcement on April 22, 2013 that it had received the revised "going private" proposal from the Buyer Consortium , and 44.1% premium to the closing price of the ADSs onSeptember 11, 2012, the last trading day prior to the Company's announcement on September 12, 2012 that it had received the original "going private" proposal from the Buyer Consortium.

Parent intends to finance the increase in the merger consideration through a combination of additional convertible note financing from CITIC PE and additional cash in the Company.

The Company's Board of Directors, acting upon the unanimous recommendation of the independent committee formed by the Board of Directors to consider the Merger (the "Independent Committee"), has approved the Amended Merger Agreement and the transactions contemplated thereby, including the Merger, and resolved to recommend that shareholders and ADS holders of the Company vote to approve and adopt the Amended Merger Agreement and the transactions contemplated thereby, including the Merger. The Independent Committee, which is composed solely of independent directors unrelated to Parent, Merger Sub or any of the management members of the Company, negotiated the terms of the Amended Merger Agreement with the assistance of its legal and financial advisors.

As previously announced, the extraordinary general meeting of the Company's shareholders to consider the approval and adoption of the Merger Agreement and the Merger that was previously called and scheduled for April 25, 2013, will be adjourned and reconvened at a later date to be announced in order to allow additional time for the Company to provide updated information to its shareholders regarding the Amended Merger Agreement. The Company expects to file with the Securities and Exchange Commission (the "SEC") and send to shareholders promptly a supplement to the definitive proxy statement dated March 25, 2013 relating to the Amended Merger Agreement. The Company will give notice to shareholders of the date on which the adjourned extraordinary general meeting will be reconvened as soon as a date is selected.

The Merger contemplated in the Amended Merger Agreement, which is currently expected to close during the second quarter of 2013, is subject to various closing conditions, including the approval by an affirmative vote of shareholders representing two-thirds or more of Shares present and voting in person or by proxy as a single class at the extraordinary general meeting, as well as certain other customary closing conditions.

Going Private News

Mon, 22 Apr 2013 04:00:00 GMT

SHENYANG, China, April 23, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that the independent committee of its board of directors (the "Independent Committee") has received a proposal letter (the "Proposal Letter") dated April 22, 2013 from Dr. Jing Lou, the Company's Chairman and Chief Executive Officer ("Dr. Lou"), and CPEChina Fund, L.P., an exempted limited partnership registered under the laws of the Cayman Islands and a China-focused private equity fund associated with CITIC Private Equity Funds Management Co. Ltd. ("CITIC PE"), in connection with the proposed merger under the agreement and plan of merger dated as of February 8, 2013, by and among the Company, Decade Sunshine Limited ("Parent") and Decade Sunshine Merger Sub (the "Merger Agreement").

In the Proposal Letter, Dr. Lou and CITIC PE proposed to increase the merger consideration payable to holders of ordinary shares, par value $0.0001 per share, of the Company (the "Shares"), and holders of American Depository Shares of the Company, each representing seven Shares (the "ADSs"), from $2.20 per Share, or $15.40 per ADS, under the Merger Agreement to $2.3857 per Share, or $16.70 per ADS, pursuant to a proposed amendment to the Merger Agreement. The proposed increase in the merger consideration represents an 8.4% premium to the current merger consideration under the Merger Agreement, a 9.9% premium to the closing price of the ADSs of April 19, 2013, and a 44% premium to the closing price of the ADSs of September 11, 2012, the last trading day prior to the Company's announcement on September 12, 2012 that it had received a "going private" proposal from Dr. Lou and CITIC PE. The Proposal Letter states that Dr. Lou and CITIC PE are working with their debt financing source and anticipate obtaining their approval for Dr. Lou and CITIC PE's proposed increase in the merger consideration prior toApril 25, 2013, that part of the increase of the merger consideration will be financed through an increase in the amount of convertible note financing from CITIC PE, that Dr. Lou and CITIC PE do not require any changes to any other terms and conditions of the Merger Agreement other than to adjust the amount of available Company cash as of the closing date to cover a portion of the increase of the merger consideration and that, if approved by the Independent Committee, Dr. Lou and CITIC PE expect the Company to enter into an amendment to the Merger Agreement and to adjourn the extraordinary general meeting currently scheduled to be held at 10:00 a.m. on April 25, 2013 to a later date to provide for sufficient time for the shareholders to consider and vote on the amended Merger Agreement. The Proposal Letter further indicates that Dr. Lou and CITIC PE have no intention to further revise and negotiate the terms of the proposed transaction.

The Independent Committee will consider the Proposal Letter with its legal and financial advisors. In light of the Proposal Letter, the Company intends to convene the extraordinary general meeting of shareholders currently scheduled to be held on April 25, 2013, but immediately adjourn the meeting without conducting any business to allow additional time for the Independent Committee to consider the Proposal Letter and provide updated information to shareholders regarding the proposed amendment to the Merger Agreement. No vote will be taken on April 25, 2013 for any resolution set forth in the notice of the extraordinary general meeting dated March 25, 2013. The Company intends to resume the adjourned extraordinary general meeting of shareholders as soon as practicable and will give notice to shareholders of the date on which the adjourned extraordinary general meeting will be resumed as soon as a date is selected.

This announcement is neither a solicitation of proxy, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that have been or will be made with the Securities and Exchange Commission (the "SEC").

Going Private News

Mon, 25 Mar 2013 04:00:00 GMT

SHENYANG, China, March 24, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that it has called an extraordinary general meeting of shareholders (the "EGM"), to be held at 10:00 a.m. onApril 25, 2013 (Beijing time). The meeting will be held at 15/A-D, Huaxin International Tower, No. 219, Qingnian Ave., Shenhe District, Shenyang 110016, People's Republic of China, to consider and vote on the proposal to adopt the previously announced agreement and plan of merger dated February 8, 2013, among Decade Sunshine Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands ("Parent"), Decade Sunshine Merger Sub, an exempted company with limited liability incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Parent ("Merger Sub"), and the Company (the "Merger Agreement"), pursuant to which Merger Sub will be merged with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the "Merger"). If completed, the Merger would result in the Company becoming a privately-held company and its American Depository Shares ("ADSs") would no longer be listed on the NASDAQ Global Market. The Company's Board of Directors, acting upon the unanimous recommendation of an independent committee formed by the Board of Directors, approved the Merger Agreement and the merger contemplated in the Merger Agreement and resolved to recommend that the Company's shareholders vote to approve and authorize the Merger Agreement and the merger.

Comments & Business Outlook

Tue, 19 Mar 2013 04:00:00 GMT

Fourth Quarter 2012 Results

Total net revenues in the fourth quarter of 2012 increased by 17.2% to RMB164.0 million (US$26.3 million), compared toRMB139.9 million (US$22.2 million) in the fourth quarter of 2011.
Operating income in the fourth quarter of 2012 decreased by 55.9% to RMB11.5 million (US$1.8 million), compared to operating income of RMB26.1 million (US$4.1 million) in the fourth quarter of 2011.
Net income attributable to 3SBio Inc. in the fourth quarter of 2012 decreased by 23.3% to RMB17.1 million (US$2.7 million), compared to net income attributable to 3SBio Inc. of RMB22.3 million (US$3.6 million) in the fourth quarter of 2011.
Net income attributable to 3SBio Inc. per ADS on a fully-diluted basis in the fourth quarter of 2012 was RMB0.75 (US$0.12)compared to a net income attributable to 3SBio Inc. per ADS on a fully-diluted basis of RMB0.99 (US$0.16) for the fourth quarter of 2011.

Going Private News

Fri, 08 Feb 2013 05:00:00 GMT

SHENYANG, China, February 8, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that it has entered into an agreement and plan of merger (the "Merger Agreement") with Decade Sunshine Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands ("Parent"), and Decade Sunshine Merger Sub, an exempted company with limited liability incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Parent ("Merger Sub").

Pursuant to the terms of the Merger Agreement, each of the Company's ordinary shares (a "Share"), including Shares represented by American Depositary Shares, each representing seven Shares (the "ADSs"), issued and outstanding immediately prior to the effective time of the merger will be cancelled in exchange for the right to receiveUS$2.20 in cash per Share, or US$15.40 per ADS, without interest, except for (i) the Shares beneficially owned by Parent, Merger Sub or certain Shares beneficially owned by certain directors, officers or employees of the Company (collectively, the "Rollover Shareholders"), and certain restricted shares and restricted share units issued by the Company to the Rollover Shareholders (collectively, the "Consortium Shares"), (ii) the Shares beneficially owned by the Company or any direct or indirect wholly owned Subsidiary of the Company and (iii) the Shares owned by holders who have validly exercised and not effectively withdrawn or lost their appraisal rights pursuant to Section 238 of the Cayman Islands Companies Law, as amended. The per Share consideration of US$2.20 or per ADS consideration ofUS$15.40 represents a premium of approximately 32.9% over the closing price on September 11, 2012 and a 33.4% premium over the 30-trading day volume-weighted average closing price on September 11, 2012, the last trading day prior to the Company's announcement on September 12, 2012 that it had received a "going private" proposal from Dr.Jing Lou, chairman and chief executive officer of 3SBio, and CPEChina Fund, L.P., a China-focused private equity fund associated with CITIC Private Equity Funds Management Co. Ltd. ("CITIC PE" and together with Dr. Jing Louand the other Rollover Shareholders, the "Buyer Group"). Collectively, the Consortium Shares owned by the Buyer Group represent approximately 18.1% of the Company's total issued and outstanding share capital.

Parent intends to finance the merger through a combination of debt, equity and cash in the Company. Parent has entered into a facility agreement pursuant to which China CITIC Bank International Limited has agreed to provide debt financing for the transaction. CITIC PE has provided equity commitment. Dr. Jing Lou and CITIC PE each entered into a limited guaranty in favor of the Company.

The Company's Board of Directors, acting upon the unanimous recommendation of an independent committee formed by the Board of Directors (the "Independent Committee"), approved the Merger Agreement and the merger contemplated in the Merger Agreement and resolved to recommend that the Company's shareholders vote to approve and authorize the Merger Agreement and the merger. The Independent Committee, which is composed solely of independent directors unrelated to Parent, Merger Sub or any of the management members of the Company, negotiated the terms of the Merger Agreement with the assistance of its legal and financial advisors.

The merger contemplated in the Merger Agreement, which is currently expected to close during the second quarter of 2013, is subject to various closing conditions, including the approval by an affirmative vote of shareholders representing two-thirds or more of the Company's ordinary shares present and voting in person or by proxy as a single class at an extraordinary general meeting of the Company's shareholders convened to consider the approval and adoption of the Merger Agreement and the merger, as well as certain other customary closing conditions. Dr.Jing Lou and the other Rollover Shareholders have agreed under a voting agreement to vote all the Consortium Shares in favor of the merger. If completed, the merger will result in the Company becoming a privately-held company and its ADSs would no longer be listed on the NASDAQ global market.

Comments & Business Outlook

Mon, 12 Nov 2012 05:00:00 GMT

Third Quarter 2012 Financial Highlights:

Total net revenues increased by 22.5% over the third quarter of 2012 to RMB180.6 million (US$28.7million), compared to RMB147.4 million (US$23.1 million) in the third quarter of 2011.
GAAP net income attributable to 3SBio Inc. per American Depositary Share ("ADS") on a fully-diluted basis decreased by 35.3% to RMB0.97 (US$0.15) compared to net income per ADS on a fully-diluted basis ofRMB1.50 (US$0.23) for the third quarter of 2011.
Non-GAAP net income attributable to 3SBio Inc. per American Depositary Share ("ADS") on a fully-diluted basis decreased by 8.7% to RMB1.37 (US$0.22) compared to net income per ADS on a fully-diluted basis of RMB1.50 (US$0.23) for the third quarter of 2011.

Dr. Jing Lou, chief executive officer of 3SBio, commented: "We remain optimistic about the long-term market potential for our core products, EPIAO and TPIAO, however, in the short term, the NDRC's cuts to retail drug price ceilings will put pressure on tender prices. The recently-completed military hospital tender resulted in price cuts in excess of 20% for both EPIAO and TPIAO but the impact on upcoming provincial tenders remains uncertain. EPIAO and TPIAO volume growth remains strong as access to dialysis treatment in China continues to improve. Due to the growing demand for dialysis services, we recently started construction of a facility in Benxi, Liaoning Province, to manufacture dialysis-related consumables. The new facility is expected to commence operations in 2015/16. We will continue to look for opportunities to broaden our product lines to serve the needs of CKD patients."

Going Private News

Fri, 28 Sep 2012 04:00:00 GMT

SHENYANG, China, September 28, 2012 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that the special committee of independent directors (the "Independent Committee") has retained Jefferies & Company, Inc. as the Independent Committee's financial advisor.

As previously announced, the Company's board of directors formed the Independent Committee to review and evaluate the preliminary non-binding proposal dated September 12, 2012 from its chairman and chief executive officer, Dr. Jing Lou, and CPEChina Fund, L.P., (together with Dr. Lou, the "Consortium") to acquire all of the outstanding shares of the Company's common stock not currently owned by Dr. Lou and his affiliates. The Consortium has retained BofA Merrill Lynch as their financial advisor.

Going Private News

Mon, 17 Sep 2012 04:00:00 GMT

SHENYANG, China, September 17, 2012 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that the special committee of independent directors (the "Independent Committee") has retained Cleary Gottlieb Steen & Hamilton LLP as the Independent Committee's legal counsel.

As previously announced, the Company's board of directors formed the Independent Committee to review and evaluate the preliminary non-binding proposal dated September 12, 2012 from its chairman and chief executive officer, Dr. Jing Lou, and CPEChina Fund, L.P., ("CITIC PE") to acquire all of the outstanding shares of the Company's common stock not currently owned by Dr. Lou and his affiliates.

The Independent Committee is evaluating and considering Dr. Lou's and CITIC PE's proposal, as well as the Company's other strategic alternatives. No decisions have been made by the Independent Committee with respect to the Company's response to Dr. Lou's and CITIC PE's proposal. The Independent Committee has not set a definitive timetable for the completion of its evaluation of the proposal or any other alternative and does not currently intend to announce developments unless and until an agreement has been reached. There can be no assurance that any definitive offer will be made, that any agreement will be executed, or that this or any other transaction will be approved or consummated.

Going Private News

Wed, 12 Sep 2012 04:00:00 GMT

SHENYANG, China, September 12, 2012 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or the "Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that its Board of Directors has received a preliminary non-binding proposal letter dated September 12, 2012 from its Chairman and Chief Executive Officer, Dr. Jing Lou, and CPEChina Fund, L.P., an exempted limited partnership registered under the laws of the Cayman Islands and a China-focused private equity fund associated with CITIC Private Equity Funds Management Co. Ltd. ("CITIC PE"), to acquire all of the outstanding shares of 3SBio Inc. not currently owned by Dr. Lou and his affiliates in a going private transaction for $15 per American Depositary Share ("ADS", each ADS representing 7 ordinary shares of the Company) in cash, subject to certain conditions.

According to the proposal letter, the acquisition is intended to be financed through a combination of debt and equity capital, and the buyer consortium has been in discussion with a financial institution which has expressed interest in financing the proposed acquisition. A copy of the proposal letter is set forth below as Exhibit A.

3SBio's Board of Directors has formed a special committee of independent directors (the "Independent Committee") consisting of Mr. Tianruo (Robert) Pu, Mr. Mingde Yu, and Mr. Peiguo Cong, to consider this proposal. The Independent Committee will retain a financial advisor and legal counsel to assist it in its work. The Board of Directors cautions the Company's shareholders and others considering trading in its securities that the Board just received the preliminary non-binding proposal from Dr. Lou and CITIC PE and no decisions have been made by the Independent Committee with respect to 3SBio's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

Comments & Business Outlook

Wed, 15 Aug 2012 04:00:00 GMT

Second Quarter 2012 Financial Highlights:

Total net revenues increased by 31.0% over the second quarter of 2011 to RMB178.3 million (US$28.1 million), compared to RMB136.1 million (US$21.1 million) in the second quarter of 2011.
Operating income was RMB43.8 million (US$6.9 million), compared to operating income of RMB30.2 million (US$4.7 million) in the second quarter of 2011.
GAAP Net income was RMB30.6 million (US$4.8 million), compared to net income of RMB30.4 million (US$4.7 million) in the second quarter of 2011.
Non-GAAP Net income was RMB41.9 million (US$6.6 million), compared to net income of RMB30.4 million (US$4.7 million) in the second quarter of 2011.
GAAP Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB1.34 (US$0.21) compared to net income per ADS on a fully-diluted basis of RMB1.34 (US$0.21) for the second quarter of 2011. Non-GAAP Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB1.84 (US$0.29) compared to net income per ADS on a fully-diluted basis of RMB1.34 (US$0.21) for the second quarter of 2011.
Cash, cash equivalents and time deposits were RMB818.0 million (US$128.8 million, including restricted cash of RMB0.7 million) at June 30, 2012.

Dr. Jing Lou, chief executive officer of 3SBio, commented: "We are pleased with our improved operating performance over the past quarter, which reflects the investments made in recent years to expand the reach and effectiveness of our sales, marketing and distribution platform. We reiterate our full year net revenue guidance of between US$99-108 million". He continued: "This past quarter we launched sales of metadoxine, a SFDA- approved treatment for alcoholic liver disease, and we continue to seek other opportunities to enhance our portfolio of marketable medicines that target large unmet needs in China. Our R&D pipeline continues to move forward with the submission to the SFDA of an innovative new drug application for sss07, an anti-TNF monoclonal antibody being developed for the treatment of rheumatoid arthritis, a chronic disease which afflicts an estimated 1% of the world's population. We are also making preparations to begin patient recruitment in the third quarter for the China arm of the phase III multi-center trial for Isotechnika's voclosporin, an innovative anti-rejection treatment for renal transplant patients."

Hot Bio-Tech News

Thu, 28 Jun 2012 04:00:00 GMT

SHENYANG, China, June 28, 2012 /PRNewswire-Asia-FirstCall/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio" or "the Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that the State Food and Drug Administration ("SFDA") has approved 3SBio's application to conduct the China arm of the multi-center phase III trial of voclosporin, a new generation calcineurin inhibitor licensed from Isotechnika Pharma Inc. ("Isotechnika") (TSX: ISA).

According to the approved protocol, this will be a phase III, randomized, multi-center, concentration-controlled comparison study on renal transplant patients. Patient enrollment is expected to begin in the third quarter of 2012.

Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Results

Total net revenues increased by 24.5% over the first quarter of 2011 to RMB147.2 million (US$23.4 million), compared to RMB118.2 million (US$18.1 million) in the first quarter of 2011.
Operating income was RMB35.5 million (US$5.6 million), compared to operating income of RMB25.3 million (US$3.9 million) in the first quarter of 2011.
Net income was RMB32.6 million (US$5.2 million), compared to net income of RMB22.2 million (US$3.4 million) in the first quarter of 2011.
Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB1.44 (US$0.23) compared to net income per ADS on a fully-diluted basis of RMB0.99 (US$0.15) for the first quarter of 2011.
Cash, cash equivalents, restricted cash and time deposits were RMB790.8 million (US$125.6 million), including restricted cash of RMB0.7 million.

Dr. Jing Lou, chief executive officer of 3SBio, commented:

"We are on budget for the first quarter and reiterate our full year guidance of US$99-108 million. While we are concerned about government-mandated price cuts, we are confident that our economies of scale, recognized product quality and reputation for innovative research and development will enable us to continue to adapt to China's evolving health care reforms. We continue to focus on the implementation of the our business objectives for 2012, including continued focus on developing our pipeline products, new business initiatives in the dialysis service segment, seeking international partners to develop Uricase-PEG 20, and leveraging our world-class manufacturing capability to obtain approvals in countries where we can be among the first to introduce quality biosimilars at competitive prices."

Joint Venture

Fri, 09 Mar 2012 05:00:00 GMT

SHENYANG, China, March 8, 2012 /PRNewswire-Asia/ -- 3SBio Inc. (NASDAQ: SSRX) ("3SBio") a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced a collaboration agreement with DaVita Inc. (NYSE: DVA), a leading provider of kidney care services for those diagnosed with chronic kidney disease to provide kidney care services in Jilin and Liaoning, two provinces in northeastern China with a combined population of 64 million. The total investment is US$20 million with DaVita and 3SBio contributing 70% and 30% respectively.

"Our collaboration with DaVita will accelerate our initiatives to provide dialysis services where they are most needed, and contribute to a better quality of life for many of China's undertreated kidney disease patients," said Dr. Jing Lou, Chief Executive Officer of 3SBio.

"This relationship marks an important chapter in DaVita's long-term international plans," said DaVita Chairman and CEO Kent Thiry. "Patients will benefit from the strategic alliance of combining 3SBio's research and DaVita's focus on delivering outstanding clinical outcomes."

As a leading provider of kidney care services in the United States, DaVita has achieved clinical outcomes that have improved year-over-year for more than a decade, and it will share that expertise through its active engagement in managing the clinics.

In addition to establishing their joint venture, DaVita and 3SBio have also agreed to enter into a supply agreement for anemia management drugs throughout China. Most dialysis patients receive recombinant human erythropoietin, or EPO, to treat anemia. Since 2001, 3SBio's EPIAO has been the leading EPO drug in China, with a current market share in excess of 40% in value terms.

Comments & Business Outlook

Thu, 08 Mar 2012 05:00:00 GMT

Full Year 2011 Financial Highlights:

Total net revenues in 2011 increased by 29.4% to RMB541.6 million (US$86.1 million), compared toRMB418.6 million (US$63.4 million) in 2010.
GAAP operating income in 2011 increased by 38.3% to RMB120.1 million (US$19.1 million), compared toRMB86.8 million (US$13.2 million) in 2010. Non-GAAP operating income in 2011 increased by 24.0% toRMB120.1 million (US$19.1 million), compared to RMB96.8 million (US$14.7 million) in 2010.
GAAP net income attributable to 3SBio Inc. increased by 33.6% to RMB108.6 million (US$17.3 million), compared to RMB81.3 million (US$12.3 million) in 2010. Non-GAAP net income attributable to 3SBio Inc. increased by 19.0% to RMB108.6 million (US$17.3 million), compared to RMB91.2 million (US$13.8 million) in 2010.
GAAP net income attributable to 3SBio Inc. per American Depositary Share ("ADS") on a fully-diluted basis was RMB4.84 (US$0.77) compared to RMB3.69 (US$0.56) in 2010. Non-GAAP net income attributable to 3SBio Inc. per ADS on a fully-diluted basis in 2011 was RMB4.84 (US$0.77) compared to RMB4.14(US$0.63) in 2010.
Positive operating cash flow of RMB137.1 million (US$21.8 million) for the year ended December 31, 2011and as of December 31, 2011, cash and cash equivalents, restricted cash and time deposits of RMB765.7 million (US$121.7 million).

Dr. Jing Lou, chief executive officer of 3SBio, commented:

"We are pleased to report another year of strong top line growth, improved profitability and cash flow. Over the past five years, we have grown the business more than five times by focusing on our core areas of kidney and cancer therapeutics. The SFDA has recently approved our new EPIAO quality standard, which meets both Chinese and European Pharmacopoeia requirements, the only domestic biological medicine company in Chinato reach this standard. We expect this recognition will further support our efforts to develop international markets for both EPIAO and TPIAO. 3SBio's collaboration with DaVita marks our entry into the dialysis service area and demonstrates our long-term commitment to providing integrated solutions for China's dialysis patients. We are optimistic about the coming year and expect net revenue growth in the range of 15-25%, or between US$99 million and US$108 million."

2012 Full Year Guidance

Based on current market and operating conditions and the following goals, the Company expects net revenues to grow by 15-25% in 2012, or between US$99 million to US$108 million.

Comments & Business Outlook

Fri, 11 Nov 2011 05:00:00 GMT

Third Quarter 2011 Financial Highlights:

Total net revenues increased by 27.5% over the third quarter of 2011 to RMB147.4 million (US$23.1million), compared to RMB115.6 million (US$17.3 million) in the third quarter of 2010.
Operating income increased by 48.7% to RMB39.8 million (US$6.2 million), compared to operating income of RMB26.8 million (US$4.0 million) in the third quarter of 2010.
Net income attributable to 3SBio Inc. increased by 50.4% to RMB33.7 million (US$5.3 million), compared to net income of RMB22.4 million (US$3.4 million) in the third quarter of 2010.
Net income attributable to 3SBio Inc. per American Depositary Share ("ADS") on a fully-diluted basis increased by 48.5% to RMB1.50 (US$0.23) compared to net income per ADS on a fully-diluted basis of RMB1.01 (US$0.15) for the third quarter of 2010.
Cash, cash equivalents and time deposits were RMB756.3 million (US$118.6 million, including restricted cash of RMB0.7 million) at September 30, 2011.

Dr. Jing Lou, chief executive officer of 3SBio, commented: "We are pleased to see continued strong sales growth driven by improved patient access to renal care and growing use of EPIAO in the treatment of chemotherapy related anemia, where EPIAO remains the only EPO approved for this indication. Preparations are underway for the launch of high dosage 36,000 IU EPIAO which will contribute to the growing awareness of EPIAO's quality of life benefits for patients undergoing chemotherapy treatment. We are also seeing meaningful sales contributions from the recent launch of TPIAO for ITP, a treatment for immune thrombocytopenia approved by the SFDA in March. Export sales have accelerated since the completion of our new state-of-the-art manufacturing facility, with demand from markets such as Egypt and Thailand driven by our compelling value proposition of world-class biological medicines at competitive prices. We reiterate our full year guidance of US$76-82 million."

Comments & Business Outlook

Tue, 16 Aug 2011 04:00:00 GMT

Second Quarter 2011 Results

Total net revenues increased by 29.0% over the second quarter of 2010 to RMB136.1 million (US$21.1 million), compared to RMB105.5 million (US$15.6 million) in the second quarter of 2010.
Operating income was RMB30.1 million (US$4.7 million), compared to operating income of RMB27.9 million (US$4.1 million) in the second quarter of 2010.
Net income was RMB30.4 million (US$4.7 million), compared to net income of RMB25.5 million (US$3.8 million) in the second quarter of 2010.
Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB1.34 (US$0.21) compared to net income per ADS on a fully-diluted basis of RMB1.16 (US$0.17) for the second quarter of 2010.
Cash, cash equivalents and time deposits were RMB725.6 million (US$112.3 million, including restricted cash of RMB0.7 million) at June 30, 2011.

Dr. Jing Lou, chief executive officer of 3SBio, commented, "We are pleased with the strong and rising demand for our core products in the dialysis and oncology areas. EPIAO's market share increased by 2.2% points, reaching an all-time high of 44.0%, more than the combined market share of our six closest competitors. The recent approval of high dosage EPIAO reinforces our pioneering role in the treatment of chemotherapy-related anemia in China. As a result of our educational efforts related to TPIAO's recently approved indication for ITP, the medical community is becoming more aware of the benefits for patients suffering from platelet disorders. Our export business also continues to gain momentum with GMP certificate renewal for EPIAO obtained in Brazil, a market with over 90,000 dialysis patients. We are laying the foundation for future growth in our export business with applications pending in Turkey and Malaysia."

Dr Lou continued, "We are also pleased to announce an investment partnership with Taizhou Oriental CMC Ltd in Taizhou China Medical City, a national level high-tech industrial park dedicated to life science. This platform will facilitate collaboration with China's public health care sector, providing both funding and access to larger scale initiatives and will play a key role in our future pipeline development for 3SBio. I am also pleased that David Chen will assume a new role as managing partner of 3SBio Ventures. We will continue to source innovative products from around the globe and execute our strategy of developing innovative products which address china's unmet medical needs."

Comments & Business Outlook

Thu, 12 May 2011 04:00:00 GMT

First Quarter Results:

Total net revenues increased by 22.7% over the first quarter of 2010 to RMB118.2 million (US$18.1 million), compared toRMB96.4 million (US$14.1 million) in the first quarter of 2010.
Operating income was RMB24.2 million (US$3.7 million), compared to operating income of RMB28.2 million (US$4.1 million) in the first quarter of 2010.
Net income was RMB22.2 million (US$3.4 million), compared to net income of RMB26.7 million (US$3.9 million) in the first quarter of 2010.
Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB0.99 (US$0.15) compared to net income per ADS on a fully-diluted basis of RMB1.22 (US$0.18) for the first quarter of 2010.

Dr. Jing Lou, chief executive officer of 3SBio, commented: "We remain on track to achieve our key objectives for 2011 andreiterate our full year guidance of 20-30% top line growth. We launched our marketing and educational campaign in key cities for the recently approved TPIAO for ITP indication. We also submitted an application to the SFDA to conduct clinical trials for voclosporin. We are now working with a partner to obtain regulatory approval for EPIAO in Malaysia. If successful, it will be one of the first biosimilar EPO products to be approved in Malaysia, one of the 39 members of the Pharmaceutical Inspection Cooperation Scheme ("PIC/S"). Our export sales efforts continue to focus on forming strong marketing partnerships and seeking regulatory approval in those developed markets where our new state-of-the-art production facility, low production costs andrecognized product quality provide us with a commercial edge over our international competitors."

Comments & Business Outlook

Wed, 18 Aug 2010 04:00:00 GMT

"Overall, the business is performing as expected with a strong set of results this quarter and first half and we reiterate our full-year revenue guidance of US$56-60 million. EPIAO's market share by value in the first quarter of 2010 reached an all-time high of 43.3% and for the first time, TPIAO sales accounted for more than 30% of net revenues, providing further evidence that we are successfully diversifying our product mix. We are also pleased to announce that our new EPIAO and TPIAO plant was inspected by the SFDA in July and has been formally certified as GMP compliant. This is a significant milestone for us as we focus on growing our business in China while taking important steps towards exploring global biosimilar opportunities. "

Comments & Business Outlook

Mon, 21 Sep 2009 04:00:00 GMT

On August 11, 2009 Dr. Jing Lou, chief executive officer of 3SBio, commented:

'We had a good quarter with an encouraging trend in our operating performance. Sales of our leading products, EPIAO and TPIAO both grew by over 37% due to the strong growth of the dialysis market and our continued efforts to raise awareness of 3SBio in the oncology segment of the market. Our share of the Chinese EPO market now exceeds that of our five closest competitors combined and we reiterate our 2009 revenue guidance.

Comments & Business Outlook

Sun, 21 Jun 2009 04:00:00 GMT

Guidance Update:

"3SBio had a strong start to 2009, delivering revenue growth and demonstrating the continued acceptance of our keystone EPIAO and TPIAO products in domestic and international markets,' commented Dr. Jing Lou, Chief Executive Officer of 3SBio. 'Our operating margin was solid and we continued to generate positive cash flow, strengthening our bottom line performance while ensuring 3SBio is in a financial position to pursue synergistic business development opportunities that will positively benefit our company. 3SBio has worked diligently to develop a portfolio of current and future pharmaceutical products, and we remain on track to achieve our 2009 financial and operational objectives."

Full Year Fiscal 2009 Guidance Ending December

	2009 Guidance	2008 Reported	Period Change
GAAP Revenue	$43 to $45 million	$35.7 million	19.44% to 25%

Source: PR Newswire (May 19, 2009)

Comments & Business Outlook

Wed, 11 Mar 2009 04:00:00 GMT

Guidance Report:

Dr. Jing Lou, Chief Executive Officer of 3SBio, commented, "3SBio delivered solid operating and financial performance in our second consecutive year since going public in early 2007. We once again demonstrated our ability to execute on our business strategy and achieve above market rate top-line growth and solid bottom-line operating profitability, despite significant investment in building brands in the marketplace, developing new products and growing the organization. 3SBio enters 2009 as a company with strengthened capabilities to generate a solid operating cash flow, a robust balance sheet, and a stream of near-term new product offerings to sustain mid- and long-term growth.

Full Year Fiscal 2009 Guidance Ending December

	2009 Guidance	2008 Reported	Period Change
GAAP Revenue	$43 to $45 million	$35.7 million	19.44% to 25%

Source: PR Newswire (March 11, 2009)