Sinovac Says Alleged Bribery Cases in U.S. Closed
Since the Chinese biopharma company announced the closing of its last investigation by a U.S. agency, its stock rose more than 2 percent.
The U.S. investigation into suspected corruption by employees of Sinovac Biotech Ltd. (Nasdaq: SVA) has been closed with no charges, according to a statement from the biopharmaceutical company.
The case, brought by the U.S. Department of Justice, had been investigating Sinovac in relation to possible violations by certain officers and directors of the Foreign Corrupt Practices Act stemming from allegations they bribed Chinese government officials.
DOJ's closing of the case followed a similar move by the U.S. Securities and Exchange Commission, which said it ended its probe on Aug. 20. The SEC subpoenaed the company in April of last year, investigating a report that its chairman and chief executive officer, Weidong Yin, had bribed the China Food and Drug Administration.
In a statement Monday, Sinovac said it was not aware of any other pending investigation into the company's practices by the U.S. government.
"Sinovac is committed to conducting business in compliance with all applicable laws and cooperated fully with the DOJ. Sinovac will continue in its mission of researching, developing, manufacturing and commercializing vaccines that protect against human infectious diseases," the company said.
Yin, joined by a consortium of investors, has been attempting to take the biotech company private. His bid has been under the company's consideration since early 2016. In July, Sinovac announced that it would no longer seek to go private and instead received $87 million in fresh capital from investors who were part of the potential buyout group.
The CEO's buyout offer has been strongly opposed by a chairman of a subsidiary, Sinovac Beijing. Aihua Pan, who holds a stake in Sinovac, has repeatedly accused Yin of bribery and claimed the company's board did not act in the best interest of shareholders.
The stock of Sinovac was trading at $7.57 per American depositary share Tuesday morning. It closed up 2 percent on Monday and inched up an additional 1 cent in early trading today.
Shares in Sinovac were trading at $7.57 per ADS intraday Tuesday, up 1 cent.
Since the company announced the closing of its last investigation by a U.S. agency, its stock rose more than 2 percent.
(Source: Thomson Reuters Eikon)
Alhough the alleged corruption occurred in China, the incident was investigated by the U.S. agencies based on fact that Sinovac's securities trade in the U.S. stock exchange.