ChinaSecurities

Sinovac Biotech, Ltd., a biopharmaceutical company, engages in the research, development, manufacture, and commercialization of vaccines for human infectious diseases in China. Its products include Healive, a vaccine for hepatitis A; Bilive, a combined hepatitis A and B vaccine; and Anflu, a split flu vaccine. The company also develops vaccines for the SARS virus, the H5N1 strain of pandemic influenza virus, and the Japanese encephalitis virus. Sinovac markets and sells its vaccine products primarily through various provincial and municipal centers for disease control and prevention. The company was founded in 1999 and is headquartered in Beijing, China.

2008 sales increased 39% yoy to $46.5 million, sold 6.93 million doses of Healive® in 2008, 35% increase yoy. Net income grew 5% to $8.0 million or EPS of $0.19. For 2009, the company expects sales of $55 million to $60 million, an increase of about 20% over 2008 sales. The 2009 sales growth rate assumes that (1) Healive will continue to generate a significant portion of Sinovac's sales revenue; (2) Sinovac will focus on driving growth of Bilive in the private market; and (3) Sinovac will increase sales of Anflu. In March 2009, Sinovac received GMP certification for its new filling and packaging production facility, increasing the company's annual production capacity to 20 million doses, with the potential for 40 million doses.