Talk:3SBio Inc. (SSRX)

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What do you think about this company? If you have general comments, add a reply to this section by clicking the [edit] link here ----->

ValueSpider 18:54, 27 November 2006 (PST)

3SBio

Certainly an interesting company. All the information I have now mostly came from the prospectus, which in my opinion doesn't tell much of story. The IPO looks flat so far. I want to but cannot get a sense of what is the company's market position vs. competitors. What attracted me to the company is that produces Erythropoietin, a drug with $10 billion annual sales. So far Amgen is the worldwide leader for erythropoietin with its flagship product Epogen (EPO), whose patent expired recently. Many companies worldwide are developing cheaper generic versions of EPO and S3Bio is one of them. While Amgen would be 3SBio's main competitor in Chinese market, I believe that 3SBio should have better pricing and cost structure as Amgen would be reluctant to cut prices too deep in developing markets like China due to possible issues like reimportation and brand dilution. What intrigued me even more is that 3SBio's manufacturing facilities are cGMP (certified Good Manufacturing Procedure) certified, which means that it complies with manufacturing standards to be able to sell its products in developed countries (like US, EU and Japan). I am not surprised if 3SBio contracts out its excess capacity to foreign company or even sell its generic version of EPO in the US or Europe. In mid 2005, Pliva, a Croatian company gets EU's first approval to market generic EPO [1]. While biogenerics regulation in US is still in limbo (the last time I checked), follow on biologics on drug like EPO will come sooner or later. I think 3SBio is in a good position to play in this EPO biogenerics game beyond China, like US and EU with its experience in China market and cGMP manufacturing facilities.

In the meantime, anyone with more information about the company, please post. I would love to know more about the company's market position, strategy, etc. beyond the generic information in the prospectus. --K Hartandi 11:27, 15 February 2007 (PST)

Just want to point out that just weeks ago China government lowered the maximum retail prices of EPO products by about 20%. http://www.ndrc.gov.cn/jggl/zcfg/t20070122_112926.htm

Company has not released any comments about the possible impact to its earning in 2007. Yet I believe the threat is real.

Thanks for the link and news. I got interested in the company after reading all the publicity surrounding the IPO. I am still trying to teach myself about the pharma industry in China. I just learned that there are at least 20 manufacturers of EPO in China, so it is pretty much a commodity product with limited margin. I am pretty much convinced that the company is more of a generic pharma player, rather than R&D based. The website states that the company has 2 staffs with MD's, 2 PhD's and 3 Master's, which is pretty much a bare-bone R&D team.

As I mentioned I have limited info about SSRX beyond the prospectus/F-1 filing. I haven't found a lot of message boards activity either. I am intrigued with the expensive multiple the company is trading at. I can't find any earnings estimates, so I cam curious about what Wall Street knows that we don't. Maybe it's just a china effect. At a glance, its margin is quite impressive (23% op margin, from google finance), certainly on the high side for a generic mfg. --K Hartandi 18:24, 19 February 2007 (PST)

3SBio Blog

By the way, this blog http://sqrti.blogspot.com/index.html has just published our article on 3SBio, with NO attribution!!--Wikister 19:52, 19 February 2007 (PST)

Hmmm nothing new there just copied and pasted from websites and prospectus. --76.21.111.185 20:16, 19 February 2007 (PST)

Translation

Can anyone translate this: http://ameblo.jp/200fund2/entry-10026066845.html??--Wikister 20:02, 19 February 2007 (PST)

This is the translation using Yahoo! translation service 3 SBio (SSRX) acquisition result Theme:The Chinese stocks Three s biology, it is such feeling. Once, turning over, it increases quantity and the investment amount. Many amount, it is not, is.

Brand name Quantity Average acquisition Cost Currency Investment (Acquisition value) Reference current price Current price assessed amount Appraisal profit and loss Current price base date Appraisal exchange

Pickpocket? S bio イ ンク ADR 16.545 U.S. dollars 16.79

07/2/15 119.30

I don't think there's much info there. It seems the author just commented that the stock price didn't go up too much.

--76.21.111.185 20:16, 19 February 2007 (PST)

This site just says he bought SSRX at 16.545. This share is recommended by a little famouse Japanese fund manager, so some Japanese are interesed in investing the company(including me).

SSRX just annouced their Q4 result

The growth looks impressive but stock price keep falling drastically. Why is that?

Q4 2006 net revenues grew 36.0% vs Q4 2005, to US$4.5 million Q4 2006 operating income up 148.1% vs Q4 2005, to US$1.1 million 2006 fiscal year net revenues increased 25.3% year-over-year to US$16.4 million 2006 fiscal year net income grew 89.9% year-over year to US$3.9 million

I don't know. There's not much information out there besides the earnings number. Maybe someone can find a transcript of the conference call. The stock started dipping at the same time as the "Shanghai Crash" late February and never really recovered. However, eyeballing its PE of 46 something (from Google finance) and PEG ratio of 1.3 (I used the revenue growth # not income from Q4 2005-2006, as I think it's more believable), I think the stock is still quite nicely valued. It's still on the low side of the original IPO projection of $12-14. Maybe the stock just got over the hangover from its IPO hype.

--khartand 16:10, 3 April 2007 (PDT)

Formatting

I just cleaned up the formatting of this page a little. Pressing "add comment" at the top of the page will keep new comments clean. Then people can quickly find each topic in the table of contents. Jonathan Stokes 13:36, 4 April 2007 (PDT)

Who has dealt with EllaFinance in PPP concepts?

Has anybody already dealt with EllaFinance.com I would appreciate to hear about your experience with this company in respect to funding of Private Placement Programs.

Hans Peter Gruner Financial Consultant