GenSci's Profitability Remains Number One Among Chinese Biotech Companies

SHANGHAI, China, Sep 29, 2006 (BUSINESS WIRE) -- GeneScience Pharmaceuticals Co., Ltd. (GenSci), a leading biopharmaceutical company in China focused on developing, manufacturing and marketing protein therapeutic products, including Somatropin, Filgrastim and Molgramostim, has been ranked number one in profitability among Chinese biopharmaceutical companies for the second quarter ended June 30, 2006, according to data compiled and released by the Chinese official agency, the National Bureau of Statistics.

The first six months of 2006 saw a decline of drug prices in China resulting from the government's tightened price control, stiff competition and increased manufacturing costs. However, GenSci kept its remarkable growth despite this adverse environment. Sales reached RMB 89.88 (US 11.37) million for the period with a profit of RMB 39.23 (US 4.96) million. Although its revenue was ranked 40th among all of the Chinese biopharmaceutical companies for the period, GenSci's profit was ranked 14th. Overall, its profit margin was ranked No. 1 in the country for the second consecutive year. GenSci's performance has surpassed many Chinese state-owned pharmaceutical conglomerates whose assets and sales are more than 10 times its size.

"We are very proud of what we have accomplished with one or two major products," said Dr. Lei Jin, CEO of GenSci. "Traditionally, GenSci's major revenue has been from our core product, Somatropin, which maintains a dominant position in the domestic market. I am especially glad to see a new driving source of revenue from liquid Somatropin that we launched last year, and from the rapid sales growth of Filgrastim." Looking forward to the next three years, Dr. Jin is optimistic of GenSci's future, with a topical form of molgramostim (currently in NDA) and two Phase II products, long-acting Somatropin and Thymosin, awaiting market approvals from China's SFDA.