Simcere Pharmaceutical Gr Stock (OTC: SMHGF)

Latest news for Simcere Pharmaceutical Gr (OTC:SMHGF) Stock

Simcere Pharmaceutical Group Ltd is engaged in the R&D, production, and commercialization of pharmaceuticals focused on generic pharmaceuticals. It has a diversified product portfolio focused on therapeutic areas, including, oncology (including cell therapy), nervous system diseases, autoimmune diseases, and antiinfection. The company's products include Endostar, Enweida, Iremod, Sanbexin and Others.

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Key Takeaways:


	The drugs Xiannuoxin and Mindewei have been conditionally approved for marketing in China. Despite the positive news, Simcere Pharmaceutical’s stock managed only a muted rise and shares in Junshi Biosciences fell for two straight days


Past the Peak? Covid Drugs Frenzy Cools As Pandemic Eases

SIMCERE PHARM GRP LTD by SIMCERE PHARMACEUTICAL GROUP LTD

Simcere Pharmaceutical Group Ltd

Needham analyst James Ricchiuti maintains Plexus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) with a Buy and raises the price target from $114 to $144.

News

Price Target

Analyst Ratings

PLXS

Needham Maintains Buy on Plexus, Raises Price Target to $144

Guidance

Carter's Sees FY24 Sales Of $2.785B -$2.825B Vs. $2.92B Est; Adj EPS Of $4.60 - $5.05 Vs. $6.2 Est.

Piper Sandler analyst Brad Capuzzi initiates coverage on AG Mortgage IT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MITT#NYSE">MITT</a>) with a Overweight rating and announces Price Target of $9.

Initiation

MITT

Piper Sandler Initiates Coverage On AG Mortgage IT with Overweight Rating, Announces Price Target of $9

Needham analyst James Ricchiuti maintains Bel Fuse (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BELFB#NASDAQ">BELFB</a>) with a Buy and raises the price target from $68 to $79.

BELFB

Needham Maintains Buy on Bel Fuse, Raises Price Target to $79

Carter's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRI#NYSE">CRI</a>) reported quarterly earnings of $0.76 per share which beat the analyst consensus estimate of $0.49 by 55.1 percent. This is a 18.75 percent increase over earnings of $0.64 per share from the same period last year. The company reported quarterly sales of $564.40 million which missed the analyst consensus estimate of $568.16 million by 0.66 percent. This is a 5.96 percent decrease over sales of $600.20 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

Carter's Q2 Adj $0.76 Beats $0.49 Estimate, Sales $564.40M Miss $568.16M Estimate

Amid Boeing Co.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) <a href="https://www.benzinga.com/markets/equities/24/06/39384624/boeings-search-for-new-ceo-persists-as-calhoun-faces-congressional-hearing">ongoing CEO search</a>, Stephanie Pope, the internal favorite for the position, has taken the spotlight at the Farnborough International Airshow.
What Happened: Pope, who currently heads Boeing&#8217;s commercial airplane unit, has been actively engaging with customers and journalists at the airshow, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-07-26/boeing-s-pope-makes-mark-at-aviation-show-as-ceo-search-heats-up">reported</a> on Thursday. This move has been seen as an attempt to bolster her case for the top job at the embattled aerospace company.
Boeing is currently grappling with a series of crises, including financial instability, and trust issues with regulators and the public. The company&#8217;s board is under pressure to appoint a leader who can navigate these challenges.
Pope, 52, has been working to stabilize Boeing&#8217;s factory operations in Seattle, where the majority of the company&#8217;s manufacturing activities are based. She was appointed to lead the planemaking unit in March, <a href="https://www.benzinga.com/news/24/05/38906756/boeings-outgoing-ceo-dave-calhoun-reelected-to-board-despite-safety-concerns-at-company">coinciding with the announcement of current CEO</a> Dave Calhoun&#8216;s impending departure.
See Also: <a href="https://www.benzinga.com/markets/equities/24/07/39947663/peter-schiff-says-americans-are-broke-points-to-fords-dismal-q2-profit-they-cant-afford-to-buy-n?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Peter Schiff Says &#8216;Americans Are Broke&#8217; — Points To Ford&#8217;s Dismal Q2 Profit: &#8216;They Can&#8217;t Afford To Buy New Cars&#8217; Due To Interest Rates</a>
Despite her background in finance and relatively short tenure in manufacturing, Pope has been endorsed by Calhoun as his natural successor. Her proactive approach at the airshow, including meeting with customers to address their concerns about delayed aircraft deliveries, has been well-received.
"I'm impressed with her, I think she's a quick learner," said John Plueger, the CEO of&nbsp;Air Lease Corp. 
"I'll restate that 24/7 I'm focused on the BCA recovery," Pope said. BCA is an acronym for Boeing's commercial airplane business. "That is my priority and that is my focus."
Pat Shanahan, CEO of Spirit AeroSystems Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), and a former Boeing executive is a leading candidate as the planemaker looks to consolidate its former aerostructures division. According to the report, directors have been intently reviewing other external candidates as well.
Why It Matters: The Farnborough Airshow appearance comes at a crucial time for Boeing. Recently, Boeing resumed <a href="https://www.benzinga.com/markets/equities/24/07/39928770/boeing-resumes-737-max-deliveries-to-china-after-regulatory-delay-report">737 MAX deliveries to China</a> after a regulatory delay, marking a significant step in restoring its global operations. This comes after a prolonged halt due to a review of the batteries powering the cockpit voice recorder.
Boeing&#8217;s <a href="https://www.benzinga.com/markets/equities/24/07/39878752/boeings-commercial-market-outlook-predicts-soaring-demand-44-000-new-airplanes-needed-by-2043">Commercial Market Outlook</a> predicted a 3% increase in airplane deliveries over the next 20 years, estimating a need for nearly 44,000 new commercial airplanes by 2043. This forecast highlights the potential growth in the aviation sector, driven by emerging markets and single-aisle market demand.
However, Boeing also faces internal challenges. Last week, Washington state factory workers <a href="https://www.benzinga.com/news/24/07/39836988/boeing-workers-vote-for-strike-mandate">voted overwhelmingly in favor of a strike mandate</a>, demanding a 40% raise during their first full negotiation with Boeing in 16 years. This mandate, with over 99% approval, underscores the workers&#8217; determination but also adds pressure on the company&#8217;s management.
Price Action: Boeing stock closed at $184.35 on Thursday, up 2.38% for the day. In pre-market trading, the stock rose 0.46%. However, the stock is down $67.41, or 26.78%, year to date, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39951461/markets-are-sounding-an-alarm-peter-schiff-warns-federal-reserve-should-cut-rates-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Markets Are Sounding An Alarm:&#8217; Peter Schiff Warns Federal Reserve Should Cut Rates Before Recession Hits</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Equities

Management

Boeing's CEO Search Intensifies As Stephanie Pope Takes Center Stage At Farnborough International Airshow

Health Care

AVTR

Avantor Reported Q2 Operating Cash Flow Of $281M And Free Cash Flow Of $235M

Avantor Q2 2024 Adj EPS $0.25 Beats $0.23 Estimate, Sales $1.703B Inline

Needham analyst Joshua Reilly reiterates Tyler Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) with a Buy and maintains $600 price target.

Reiteration

Needham Reiterates Buy on Tyler Technologies, Maintains $600 Price Target

Large Cap

Centene Increased Its 2024 Premium And Service Revenues Guidance Range By $5B To $141B-$143B To Reflect An Additional $2B Commercial Premium Revenue, $2B Medicare Premium Revenue And $1B Medicaid Premium Revenue

The question of whether former President Donald Trump might replace Sen. J.D. Vance (R-Ohio) as his vice presidential candidate has been raised. This speculation is due to Vance&#8217;s underwhelming polling and the growing momentum of Vice President Kamala Harris. Despite Trump&#8217;s continued support for Vance, the possibility of a replacement is being discussed.
What Happened: Republican Party rules technically allow Trump to select a new running mate. However, such a decision would need to be made swiftly. The party could either reconvene its national convention or proceed with a vote of the smaller group of Republican National Committee members to determine Vance&#8217;s replacement, Business Insider <a href="https://www.businessinsider.com/how-donald-trump-could-replace-jd-vance-vice-president-poll-2024-7">reported</a> on Friday.
Time is a significant factor, with early voting beginning in some states in September. Amy Dacey, former CEO of the Democratic National Committee, and Kenneth Mayer, a recently retired political science professor, both highlighted the complications that arise once ballots are printed. They described the potential replacement of Vance as &#8220;extraordinarily disruptive.&#8221;
&#8220;I think sometimes what people forget is that people start voting in September&#8230;And the worst case scenario would be for your nominees not to appear on a ballot in a state,&#8221; Dacey said. 
Despite the speculation, Trump reaffirmed his support for Vance on Thursday, stating that Vance was &#8220;doing a great job.&#8221;
See Also: <a href="https://www.benzinga.com/news/24/07/39922362/hillary-clinton-says-kamala-harris-is-chronically-underestimated-says-vp-can-prosecute-a-compelling?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Hillary Clinton Says Kamala Harris is &#8216;Chronically Underestimated&#8217; — Says VP Can &#8216;Prosecute A Compelling Case&#8217; Against Failed President Trump</a>
Why It Matters: Vance&#8217;s selection as <a href="https://www.benzinga.com/general/politics/24/07/39873381/trump-vp-pick-j-d-vance-worth-watching-for-potential-google-breakup-market-strategist-says-not-a">Trump&#8217;s running mate</a> had implications for several sectors, particularly the cryptocurrency industry, due to his pro-crypto stance and Bitcoin holdings. However, <a href="https://www.benzinga.com/general/politics/24/07/39916075/j-d-vance-venture-capital-background-under-scrutiny-it-never-seemed-like-he-was-even-working-it-">Vance&#8217;s venture capital</a> background and his short political career have come under scrutiny.
Nobel Prize-winning economist, Paul Krugman, highlighted <a href="https://www.benzinga.com/news/24/07/39975790/trump-vp-choice-jd-vance-is-a-tech-bro-pick-says-paul-krugman-same-people-last-year-were-infatuated">Vance&#8217;s strong backing </a>from the tech community, the same group that had previously shown a strong interest in Robert F. Kennedy Jr. This connection has brought Vance&#8217;s selection as VP candidate under the spotlight.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39924772/democratic-mega-donors-predict-kamala-harris-to-pick-vp-among-these-3-lawmakers-as-presidential-race?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Democratic Mega Donors Predict Kamala Harris To Pick VP Among These 3 Lawmakers As Presidential Race Against Trump Heats Up</a></li>
</ul>
Photo: Consolidated News Photos/Shutterstock.com
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Politics

Can Trump Replace JD Vance Amid Kamala Harris Picking Pace? Experts Warn That Could Be 'Extraordinarily Disruptive'

Centene Reaffirms 2024 Adjusted EPS Guidance Floor Of Greater Than $6.80 Versus Consensus Of $6.83

Needham analyst Ryan MacDonald downgrades Instructure Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INST#NYSE">INST</a>) from Buy to Hold.

Downgrades

INST

Needham Downgrades Instructure Hldgs to Hold

PODD

Insulet Expects To Raise Full Year 2024 Total Omnipod Revenue Outlook To 18% - 21% (Previously 15% - 19%)

Oppenheimer analyst Ken Wong maintains Tyler Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) with a Outperform and raises the price target from $550 to $625.

Oppenheimer Maintains Outperform on Tyler Technologies, Raises Price Target to $625

Centene Reported Q2 Premium And Service Revenues Of $36B. Membership Increased 34% In The Marketplace Compared To The Second Quarter Of 2023

&quot;Second quarter&nbsp;revenue exceeded our expectations across the board as a result of strong demand for Omnipod 5, resulting in robust revenue growth and sequential increases in new customer starts in both the U.S. and international markets,&quot; said Jim Hollingshead, President and Chief Executive Officer.
&quot;The preliminary results we announced today reinforce our confidence in Insulet&#39;s ability to drive continued profitable growth for the remainder of 2024, and we look forward to providing an update on our upcoming earnings call.&quot;

Insulet Reports Preliminary Q2 Revenue Of $488M (Est $460.275M), Up 23% Y/Y, Exceeds Guidance Range Of 15% - 18% In Constant Currency Due To Revenue Outperformance For All Product Lines

Aon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AON#NYSE">AON</a>) reported quarterly earnings of $2.93 per share which missed the analyst consensus estimate of $3.08 by 4.87 percent. The company reported quarterly sales of $3.760 billion which beat the analyst consensus estimate of $3.733 billion by 0.73 percent. This is a 18.35 percent increase over sales of $3.177 billion the same period last year.

Aon Q2 2024 Adj EPS $2.93 Misses $3.08 Estimate, Sales $3.760B Beat $3.733B Estimate

Centene Q2 2024 Adj EPS $2.42 Beats $2.07 Estimate, Sales $39.836B Beat $36.460B Estimate

Morgan Stanley analyst Jeffrey Hung initiates coverage on CervoMed (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRVO#NASDAQ">CRVO</a>) with a Overweight rating and announces Price Target of $35.

CRVO

Morgan Stanley Initiates Coverage On CervoMed with Overweight Rating, Announces Price Target of $35

Shanghai AlphaGen Therapeutics and ArtBio forged a far-reaching agreement to expand ArtBio's market and develop new radioligand therapies. Additionally, Biocytogen Pharma signed an antibody evaluation/option agreement with Gilead Sciences.

Week In Review: AlphaGen And ArtBio Form China-US Radioligand Partnership

Profit Setback For Simcere Pharma In Novel Drugs Quest

GILD

IVBXF

JBPHF

LEGN

Simcere Pharmaceutical Gr

<h4>Key Takeaways:</h4>

<ul>
	<li>The drugs Xiannuoxin and Mindewei have been conditionally approved for marketing in China. Despite the positive news, Simcere Pharmaceutical&rsquo;s stock managed only a muted rise and shares in Junshi Biosciences fell for two straight days</li>
	<li>With the latest wave of the pandemic already abating, demand for Covid treatments may lag expectations</li>
</ul>

By Molly Wen

China is deploying more drugs in its battle against Covid, which is good news for patients. But as the pandemic subsides, the growing list of treatments spells trouble for makers of the life-saving medicines.

Returning from the Lunar New Year holiday, two pharmaceutical companies announced progress in bringing new Covid drugs to the market, but the news was greeted with little fanfare by the stock market.

Last Sunday,&nbsp;Simcere Pharmaceutical Group Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SMHGF#OTC">SMHGF</a>) and&nbsp;Shanghai Junshi Biosciences Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SHJBF#OTC">SHJBF</a>) gained conditional approval from Chinese regulators to market their oral Covid treatments, both small-molecule drugs used to treat patients with mild to moderate symptoms.

The newly approved treatments join a growing arsenal of drugs on the Chinese market for fighting Covid, alongside&nbsp;Pfizer&rsquo;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) Paxlovid,&nbsp;Merck&rsquo;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) Molnupiravir and&nbsp;Genuine Biotech&rsquo;s&nbsp;Azvudine.

However, as drug options have multiplied, market enthusiasm for Covid-related pharma stocks appears to have cooled. In the two days after the drug approval, Simcere Pharmaceutical&rsquo;s shares rose a mere 1.3%. Meanwhile at Junshi Biosciences, the Covid drug progress was not enough to cheer up investors worried about the overall profit outlook. The stock price fell 5.5% and 3.7% in the days after the approval, after the company estimated a&nbsp;net loss&nbsp;for last year.

Infection numbers spiked across China after the government relaxed its zero-Covid policy in December. But the current wave looks to have peaked, with no major resurgence during the Lunar New Year holiday and no new strains detected, according to the Chinese Center for Disease Control and Prevention (CDC). As of Jan. 26, the official tally stood at 216,000 hospitalized cases of Covid including 26,000 severe cases.

But success in containing Covid means the market for drugs to treat the inflection could be less buoyant than previously expected. With demand moderating, can the latest two drugs manage to turn a profit?

Simcere Pharmaceutical was quick to get down to business. A day after marketing approval was granted, the Beijing Municipal Medical Insurance Bureau priced Simcere&rsquo;s Covid drug&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0129/2023012900073.pdf">Xiannuoxin</a>&nbsp;at 750 yuan ($112) per pack, compared with an ex-factory price between 705 and 720 yuan per pack after tax. The company said it was ready to ramp up production and would sell through offline and online channels. By contrast, Junshi Biosciences has yet to release any pricing, although it vowed to start mass production and delivery of its drug&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0130/2023013000033.pdf">Mindewei</a>&nbsp;(VV116) soon.

<h4>Drugs with different bio targets</h4>

The two drugs use different pathways to fight Covid, but both methods are well-established in the research community. Simcere&rsquo;s Xiannuoxin targets 3CLpro, an enzyme involved in virus replication. The treatment works in a similar way to Pfizer&rsquo;s Paxlovid by combining two drugs to tackle the injection. The first drug, Simnotrelvir, inhibits 3CLpro while the second component, Ritonavir, enhances the anti-viral effects by slowing down the metabolism of Simnotrelvir.&nbsp; The company produces its own Simnotrelvir, while&nbsp;Ascletis Pharma&nbsp;(1672.HK)supplies it with Ritonavir.

Simcere Pharmaceutical said clinical trials indicated that its drug speeded up recovery time, based on data from 1,208 adult Covid patients with mild to moderate symptoms. The patients given Xiannuoxin took 1.5 fewer days to be symptom-free than people in the placebo group. The 11 tracked symptoms included coughing, fever, headaches, diarrhea, muscle pain and full-body aches.&nbsp; After five days of treatment, the viral load of patients in the drug group fell 96% and their Covid tests turned negative 2.2 days ahead of those in the placebo group. But the data from the clinical trials of Xiannuoxin have not been published in any academic journal yet.

The drug produced by Junshi Biosciences uses a different mechanism to obstruct Covid cells, targeting the same RdRp enzyme as Merck&rsquo;s Molnupiravir and Genuine Biotech&rsquo;s Azvudine.

The new drug Mindewei is an RdRp inhibitor, like the Covid drug Remdesivir which was approved in the U.S. for treating severe Covid conditions through intravenous injection. But by contrast, Mindewei can be taken orally and its active ingredient is a wide-spectrum coronavirus inhibitor recognized as safe and effective by the academic community.

Last December, the authoritative global journal &ldquo;New England Journal of Medicine&rdquo; compared Junshi&rsquo;s Mindewei to Pfizer&rsquo;s Paxlovid, based on the outcome of phase-three clinical trials for the Chinese drug. It found that Mindewei was not inferior to Paxlovid in treating Covid patients with mild to moderate symptoms and high risk factors.

Junshi Biosciences said its phase-three clinical trials showed that the drug shortened patients&rsquo; recovery time from Covid. In the study of 1,277 patients with mild to moderate symptoms, those treated with the drug were symptom-free two days sooner than their peers in the placebo group. &nbsp;But detailed data have not been released in any academic journal.

<h4>Limited profit prospects</h4>

At the end of last year, China wrestled with a dire shortage of Covid oral drugs as infections mounted and severe cases surged. Paxlovid sold for 1,890 yuan per pack and was in extremely short supply to the point where its black-market price reached 50,000 yuan per pack. Paxlovid did not make it onto the&nbsp;list&nbsp;of&nbsp; nationally insured drugs in January, while the Chinese drug Azvudine made the cut and was priced at 11.58 yuan per pill (3mg), down 35% from its initial marketing price and costing around 350 yuan for each course of treatment.

Xiannuoxin&rsquo;s ex-factory price per course is about 720 yuan. The drug retails at a higher price than Azvudine but lower than Paxlovid and Molnupiravir. When considering the cost of ingredients, which make up about half the retail price, and the 502 million yuan in R&amp;D costs, the drug would have to sell 1.7 million courses to turn a profit.

And crucially, the Covid drugs market is set to become more crowded, just as the infection curve moderates.

Among companies rushing to get their products approved are Guangdong Raynovent Biotech, &nbsp;a subsidiary of&nbsp;Guangdong Zhongsheng Pharmaceutical&nbsp;(002317.SZ),&nbsp;Kexing Bioproducts&nbsp;(688136.SH) and the Japanese company&nbsp;Shionogi &amp; Co., Ltd.. With more players boosting supply, profitability may well suffer.

In terms of valuation, Simcere Pharmaceutical has a price-to-sales (P/S) ratio of 4.3 times, lower than the 11.8 times for Junshi Biosciences. And the ratios of Zhongsheng Pharmaceutical and Kexing Bioproducts are 7.5 times and 3.3 times respectively. That means Simcere Pharmaceutical is not enjoying any premium simply because it is moving more swiftly with commercialization. On the contrary, investors appear to have more faith in the bigger innovative drug company, Junshi Biosciences.

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Friday, February 03, 2023