Full Press Release Details
O R R E C T I O N -- Sinovac Biotech Ltd./
news release, "Sinovac Reports Unaudited Full Year 2008 and Fourth Quarter
Financial Results with Financial Tables," issued earlier today by Sinovac
Biotech Ltd. over PR Newswire Asia, we are advised by the company that the last
sentence of the second paragraph from the section titled "Three Months Ended
December 31, 2008" should read, "For the fourth quarter of 2008, Healive, Bilive
and Anflu as a percentage of sales represented 78.8%, 1.5% and 19.7%,
respectively," rather than, "For the fourth quarter of 2008, Healive, Anflu and
Bilive as a percentage of sales represented 78.8%, 1.5% and 19.7%,
respectively," as originally issued inadvertently. Full, corrected version
Reports Unaudited Full Year 2008 and Fourth Quarter Financial Results with
Conference call scheduled for Thursday, April 9, 2009 at 9:00 a.m. ET
Provides full year 2009 sales guidance of $55 million to $60 million
April 9 /PRNewswire-Asia/ -- Sinovac Biotech Ltd. (NYSE Amex: SVA), a leading
developer and provider of vaccines in China, today announced the Company's
unaudited financial results for the three and twelve month periods ended
2008 Financial Highlights
| -- | Record full year 2008 sales increasing 39% year-over-year to $46.5 million |
| -- | Sold 6.93 million doses of Healive in 2008, up from 5.12 million in 2007 |
| -- | Record full year net income growing of 5% to $8.01 million |
| -- | Full year EPS is $0.19 |
| -- | Cash and cash equivalents increased 93% to $32.9 million, compared to the beginning of 2008, due to an increase in operation profits, improved accounts receivable collection and raising capital. |
Weidong Yin, Chairman, President and CEO, commented, "We are pleased with our
results for the quarter and the year, with full year 2008 sales up 39%, in line
with our expectations. The sales of our vaccines continue to grow as awareness
of the benefits of inoculations for hepatitis A and seasonal influenza increases
across China. As reported in February 2009, the State Food and Drug
Administration (SFDA) completed a site inspection of Sinovac in conjunction with
the production capacity buildup program for Panflu, with the intention to
protect China's residents if an outbreak of human bird flu should occur. In
March, we received GMP certification at our filling and packaging production
facility, which increased our annual production capacity to 20 million doses and
provided the potential to double capacity to 40 million doses. This capacity
expansion provides Sinovac with a solid foundation for supporting the government
stockpiling program for Panflu and increasing the sales quantities for our
commercialized vaccines, as well as providing for the future launch of products
in our vaccine development pipeline. Although we are feeling the effect of the
financial crisis, the healthcare industry is not very sensitive to the economic
cycle. Sinovac has accumulated resources of technological expertise, operation
management experiences, and investment capability, which positions the Company
well to execute our sales growth strategy in 2009 and achieve our full year
sales increase of 20% over 2008 levels.
causing foot, hand, mouth disease is a significant health concern among children
across Asia, as the viral illness has reportedly infected more than 500,000
children in China last year. Our research and development team has made
significant progress in advancing the pre-clinical studies. We are aiming to
develop the world's first EV 71 vaccine and have recently presented its findings
at the Chinese New Vaccines Reporting Conference. We are on track to file the
clinical trial application with the SFDA in 2009 in order to commence human
dosing. The Company holds the development rights to this first-of-its-kind
vaccine and intends to submit the patent application for this vaccine in China
in 2009. We anticipate that this vaccine should become a flagship product given
the severity of recent hand, foot and mouth disease outbreak in China and other
countries. As the developer of a vaccine against hand, foot and mouth disease,
Sinovac is well positioned to address this global unmet medical need as cases
continue to be reported in China and neighboring countries. Sinovac is proud to
take a leadership position, as we did with Panflu, to benefit China and the
world by developing and manufacturing high quality, novel vaccines," concluded
Months Ended December 31, 2008
twelve months ended December 31, 2008, sales reached $46.5 million, compared to
$33.5 million for the full year 2007, representing 39% growth.
the twelve months ended December 31, 2008, Sinovac sold 6.93 million doses of
Healive, compared to 5.12 million doses for the same period in 2007. Sinovac
sold 1.56 million doses of Anflu during the full year 2008, compared to 1.59
million doses for the same period of the prior year. The Company sold 255,000
doses of Bilive during the 2008 period, compared to
doses in the prior year period. For the first twelve months of 2008, Healive,
Anflu, and Bilive as a percentage of sales represented 88%, 9% and 3%,
profit for twelve months ended December 31, 2008 was $36.6 million, with a gross
margin of 79%, compared to $27.0 million, or 81%, for the same period of
operating expenses for the twelve months ended December 31, 2008 were $21
million, compared to $13.6 million for the same period 2007. Selling, general
and administrative expenses for the twelve months ended December 31, 2008 were
$17.5 million, compared to $12.0 million in the same period of 2007. SG&A
expenses as a percentage of sales represented 37.6% in the 2008 period, compared
to 35.7% in the same period of last year.
expenditures on research and development expenses for the twelve months ended
December 31, 2008 were $2.8 million, compared to $965,000 in the same period of
2007. The increase in R&D expense for 2008 was partly attributable to the
expenses for the development of its vaccines against avian flu, EV 71 and animal
income was $15.6 million for the twelve months ended December 31, 2008, compared
to $13.5 million in the same period of 2007. The year-over-year increase in
operating income reflected increased sales of hepatitis A and hepatitis A&B
income for the twelve months ended December 31, 2008 included $702,000 of
interest and financing expenses, $3.0 million of income taxes expense, $291,000
of interest and other income and $4.2 million of minority interest. Net income
for the same period of 2007 included $478,000 of interest and financing
expenses, $2.0 million of income taxes, $191,000 of interest and other income
and $3.6 million of minority interest. Net income for the twelve months ended
December 31, 2008 was $8.0 million, or $0.19 per diluted share, compared to $7.7
million, or $0.19 per diluted share, in the same period of 2007.
2009, Sinovac Beijing was granted High and New Technology Enterprises (HNTE)
status by the Chinese government. HNTEs are entitled to the preferential income
tax rate of 15%, compared to the unified income tax rate of 25%, retroactively
to January 1, 2008. Sinovac Beijing will benefit from the lower tax rate for a
three-year period, covering 2008, 2009 and 2010.
applying the HNTE tax rate of 15% for the full year ended December 31, 2008
resulted in a $2.1 million decrease in the provision of the current income tax
with a corresponding reduction in the income tax liability and a $1.1 million
increase in deferred income tax expense with an offset to deferred income tax
assets. The rate change was recorded in the period that changes
Months Ended December 31, 2008
fourth quarter 2008, sales were $12.4 million, compared to $9.2 million in the
fourth quarter 2007. The year-over-year increase in sales reflected Sinovac's