Sinovac Posts Decline in Sales, Lower Income
The biopharma company, trouble-ridden for much of 2018, reported disappointing financial results for the first quarter.
Sinovac Biotech Ltd. (Nasdaq: SVA) saw its shares inch 2 cents lower Thursday, to $6.47 apiece, after the company reported decreased sales for the first quarter.
The Beijing-based biopharma company said in a statement today that sales in the three months through March reached $36.6 million, down 23 percent year-over-year.
Sinovac attributed the decline to lower demand for certain products like Inlive, as the EV71 epidemic is now under control. Some of its other products, including the hepatitis A&B vaccine, the company was unable to produce due to an issue with its supplier of antigens, according to the report.
Net income attributable to shareholders was $1.2 million, or 1 cent per share, compared with $8.4 million a year ago.
Earlier this year, Sinovac announced that its shareholder rights agreement had been triggered by a group of stockholders that owned more than 15 percent of the company.
As such, the company said in February, the board had approved the exchange of rights held by shareholders and the total number of shares outstanding increased to 98.9 million. Further, the exchange of rights also included the issuance of 14.6 million new Series B preferred shares.
The move came after Sinovac has fought a potential takeover effort by a group of dissident shareholders and had been seeking to go private through much of last year.
The group that amassed the stake in the company included 1Globe Capital LLC, Chiangjia Li, OrbiMed Advisors LLC, and additional shareholders, the company said.