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China's ShangPharma Announces Q1 2012 Results

Friday, May 18, 2012
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ShangPharma Corporation (NYSE: SHP), a China-based pharmaceutical and biotechnology research and development outsourcing company, announced its unaudited financial results for the first quarter ended March 31, 2012.

ShangPharma Corporation (NYSE: SHP) is a China-based contract research organization providing high quality and cost-effective services for the pharmaceutical and biotechnology industry. It offers a broad range of high-quality, integrated services across the drug discovery and development process to help international and Chinese pharmaceutical and biotechnology companies discover and develop novel drug candidates efficiently. ShangPharma's services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services.

First Quarter 2012 Highlights:

- Net revenues increased by 24.1% year-over-year to $30.8 million.

- Net revenues from the Company's top-10 customers increased by 33.3% year-over-year to $20.2 million, representing approximately 65.7% of total net revenues.

- Net revenues from full-time-equivalent ("FTE")-based services increased by 30.3% year-over-year to $23.6 million.

GAAP gross margin was 30.2%, compared with 32.3% in the first quarter of 2011. Non-GAAP gross margin was 31.1%, compared with 34.7% in the first quarter of 2011.

- GAAP operating margin was 5.2%, compared with 10.0% in the first quarter of 2011. Non-GAAP operating margin was 9.7% compared with 15.5% in the first quarter of 2011.

- Net revenue per employee increased 8.3% year-over-year.