The race was stopped after four minutes when Simoncelli's bike veered across the track at turn 11 into the path of Colin Edwards and Valentino Rossi.
The 24-year-old had his helmet knocked off and was hit by both other riders.
American rider Edwards also fell but escaped serious injury - while fellow Italian Rossi was able to return to the pits.
Simoncelli lay motionless on the track after the impact, while the race was immediately red-flagged.
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(Source: BBC Sport)
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