2. Simcere Pharmaceutical (SCR), is a manufacturer and supplier of branded generic pharmaceuticals in China. The company manufactures and sells 46 principal pharmaceutical products and distributes two additional pharmaceuticals that are manufactured by independent third parties. The stock gained 4.9% on the week.
Of the 10 analysts covering the stock, 50% recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 30.7% to $15.07 in the upcoming 12 months.
Last week, it was revealed that Merck would form a joint venture with Simcere, expanding its market presence in China. Both the companies have signed a framework agreement for establishing a venture focused on serving China's rapidly expanding health care needs by providing significantly improved access to quality medicines in major therapeutic areas.Merck believes that this partnership is a step forward to the company's major strategy of growing business in China and is fully aligned with the local government's goal to increase access to quality products.