Full Press Release Details
SINOVAC BIOTECH 6K, PRESS RELEASE, 01.03.05
SINOVAC BIOTECH LTD.
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REPORTS 2004 SALES GROWTH OF OVER 230%
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AND ANNOUNCES $1.475 MILLION PRIVATE FINANCING
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BEIJING, January 3, 2004 - Sinovac Biotech Ltd. ("Sinovac") ("the Company")
(AMEX: SVA) has recorded 2004 sales growth of more than 230% according to
unaudited management-prepared sales figures. The Company has sold more than 1
million doses of its Hepatitis A vaccine, Healive, at a price of 55 RmB (US
$6.64) per dose. These 2004 sales thus total more than US $6.6 million, an
increase of more than 230% over 2003 sales of US $2.8 million.
Sinovac management is awaiting the final approval of its combined Hepatitis A&B
vaccine, Bilive, by the Chinese FDA and expects to commence sales of this
product shortly after this approval. It is also anticipated that the Company
will start commercial sales of its flu vaccine in 2005. With further major
increases expected in the sales of Sinovac's proprietary Hepatitis A vaccine and
with the other two vaccines projected to commence sales in 2005, management is
predicting additional significant increases in annual revenues.
The Company is also pleased to announce that it has entered into a securities
purchase agreement for a $1.475 million private placement with institutional
investors for units (each a "Unit") in the capital of the Company at a price of
$3.00 per Unit. Each Unit is comprised of one share of common stock of the
Company (each a "Share") and one common stock purchase warrant (each a
"Warrant"), with each such Warrant entitling the holder thereof to acquire one
additional Share at a price of US$3.35 per Share from the date of issuance of
the Units until the one year anniversary plus one trading day from the date of
issuance of the Units, and at a price of US$4.00 thereafter until the two year
anniversary date from the date of issuance of the Units. The Warrants are
subject to a call provision in favor of the Company, which may reduce the expiry
date of the Warrants.
These Units are being sold in a private transaction under Regulation D of the
Securities Act of 1933, as amended. The securities being issued pursuant to this
private placement have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements of the Securities Act
The proceeds of the this transaction are intended to be used for the acquisition
of the additional 20.56% of Sinovac Biotech Co., Ltd., the Company's majority
owned subsidiary, as previously announced, and for working capital purposes.
About Sinovac Biotech Ltd.
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Sinovac Biotech Ltd. specializes in the research, development,
commercialization, and sales of human vaccines for infectious illnesses such as
hepatitis A and hepatitis B, influenza, "SARS", and avian flu. Sinovac is one of
the leading emerging biotechnology companies in China.
Sinovac has three vaccines that have completed all three phases of clinical
trials - Hepatitis A, Hepatitis A&B combined, and influenza (flu). The Hepatitis
A vaccine, Healive(TM), is currently experiencing strong sales growth in China
and applications have been filed for its sale in nine other countries to date.
Sinovac's Hepatitis A&B combined vaccine, Bilive(TM), is expected to receive
approval to commence sales in China soon and to achieve similar sales growth to
Healive(TM). The flu vaccine completed clinical trials in April 2004 and a New
Drug Application has been filed with the SFDA (Chinese FDA). Approval of
Sinovac's flu vaccine is expected in 2005 upon completion of the flu vaccine
production line. Since demand for a safe and effective flu vaccine in China
greatly outstrips supply, sales are expected to escalate rapidly. Furthermore,
since individuals are vaccinated against the flu on an annual basis, demand will
remain high every year.
Sinovac is currently the only company in the world to be conducting clinical
trials for a vaccine to prevent SARS. The Company is also developing a vaccine
targeting avian flu in partnership with the China Center of Disease Control
For further information please refer to the Company's filings with the SEC on
EDGAR or refer to Sinovac's website at www.sinovac.com.
If you would like to receive regular updates on Sinovac please send your email
request to info@sinovac.com.
Contact: Investor Relations at (888) 888-8312 or 1 604 684-5990 from outside of
North America or info@sinovac.com
THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF
SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION
21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH
RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT
INTERESTS, SINOVAC'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND
DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE
STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND
UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.