Monday September 17, 12:00 pm ET

 

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates initiates coverage of Sinovac Biotech (AMEX:SVA - News) with a Strong Speculative Buy rating and a price target of $5.80. The 28-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

 

Sinovac is a China-based biotech company that focuses on the research, development, manufacturing, and distribution of vaccines that protect against human infectious disease. Its currently approved products include Healive, (hepatitis A), Bilive, (inactivated vaccine against hepatitis A & B), and Anflu (vaccine against influenza virus). All are in the private market. Sinovac is currently developing vaccines against the H5N1 strain of pandemic virus, the Japanese Encephalitis virus and the SARS virus. Sinovac offers investors a good opportunity to invest in the huge and growing vaccine market, the prospects of which are driven by a large population of 1.3 billion with low vaccination coverage, increasing health consciousness, and the Chinese central government's commitment to sharply increase spending on the national immunization program. To cope with the rapid increase in demand for hepatitis A and influenza vaccines, the Company has aggressively increased its production capacity of Healive from 6 million doses to 10 million doses per annum and that of Anflu from 2 million doses to 4 million doses per annum, which can be transferred into 20 million doses of pandemic influenza vaccines per annum. Collaborations with multinational pharmaceutical companies will substantially increase its distribution opportunities within China and in the overseas markets. We expect Sinovac's revenue to increase 105% to $31.4 million and rise 38% to $43.3 million in 2008, with net income of $7.4 million and $12.1 million in 2007 and 2008, versus a net loss of $0.7 million in 2006.

 

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

 

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $35,000 from the Company for 4 quarterly Research Reports with coverage commencing on 9/17/2007. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Dutton Associates

John M. Dutton, 916-941-8119.

 

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