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Sinovac Reports Steady Revenue, Income; Ready to Resume Influenza Vaccine Production

Before noon Thursday, the stock of Sinovac was trading at $7.72 per American depositary share, same as yesterday's close.

Anna Vodopyanova
    Nov 08, 2018 9:05 AM  PT
Sinovac Reports Steady Revenue, Income; Ready to Resume Influenza Vaccine Production

Sinovac Biotech Ltd. (Nasdaq: SVA) reported today its revenue jumped 83 percent in the third quarter, while income grew 29 percent year-over-year, though the positive results had little effect on its stock Thursday morning in New York.

The Beijing-based biopharmaceutical company, which produces vaccines against infectious diseases, said in a statement today that it generated revenue of $122.5 million in the three months through September compared with $66.9 million a year ago.

Its income reached $14.1 million, or 24 cents per share, compared with $10.9 million, or 19 cents per share, during the same period last year.

Sinovac attributed the strong performance to the increased sales of the EV71 vaccine, spurred by government advocacy in the first half of the year encouraging immunization to prevent the spread of hand, foot, and mouth disease in China.

In addition, the company said it expanded its penetration of the market, forming strategic partnerships that led to a 30 percent increase in its customers in the first six months of 2018.

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Sales of vaccines by Sinovac during first half of 2018, 2017

(Source: Sinovac)

Sinovac said it has not had any sales of influenza vaccine during the 2018-2019 flu season as the production of the drug was suspended at its Beijing facilities after an April incident with the company's shareholder. The company added, however, that it has verified the safety and quality of the facilities, and it is ready to resume production.

Earlier this year, Sinovac dropped its two-year-old privatization plan after receiving a recommendation of an independent special committee of directors that had been created to review the proposal.

Instead, the company said in July, the board unanimously approved accepting $86.7 million in a private placement of common shares with two investors, Vivo Capital and Advantech Capital. The two had previously been part of a group with the company's chairman that announced a year ago an offer of $402 million, or $7 per share, to take the company private. That represented an increased offer to one originally made in February 2016.

The company said the proceeds from the offering would be used to increase research related to quality control and to build additional production facilities. The moves would help the company meet a growing demand for its vaccines in China and worldwide, the company said. Sinovac produces a wide range of vaccines, including vaccines against hepatitis A and B, avian flu, swine flu, mumps, and seasonal influenza.

Before noon Thursday in New York, the stock of Sinovac was trading at $7.72 per American depositary share, unchanged from yesterday's close.

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(Source: Thomson Reuters Eikon)

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