Sinovac Completes Acquisition Aimed at Expanding Production Capacity
Press Release Source: Sinovac Biotech Ltd. On Monday February 15, 2010, 8:00 am EST
BEIJING, Feb. 15 /PRNewswire-Asia/ -- Sinovac Biotech Ltd. (Nasdaq:SVA ), a leading China-based vaccine manufacturer, today announced the completion by its subsidiary, Sinovac Beijing, of the acquisition of buildings and land use rights. The total consideration for the purchase is approximately RMB120 million ($17.6 million), which will be financed from working capital. The initial payment of RMB56.5 million ($8.3 million) will be paid before February 20, 2010 and the balance of the purchase price will be paid in three installments within three years.
Sinovac Beijing is acquiring five existing buildings with a total built- out area of 32,322.66 square meters on 29,021.61 square meters of land, located in Changping District, Beijing, about half hour driving away from our headquarter. The site was previously used to manufacture medicinal products. Sinovac plans to set up two new production lines with a combined annual production capacity of approximately 40 million doses, a filling and packaging line, a warehouse and an animal house. At the site, the Company will manufacture the enterovirus 71 (EV71) vaccine, which causes hand, foot, and mouth disease (HFMD), and its other currently marketed flu vaccines.
Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "We are pleased to complete the acquisition of this previously announced transaction, which supports our growth strategy. The Changping site will enable us to expand our production capacity, as the site will house two state- of-the-art production lines and other necessary supporting functions. We anticipate that it will take approximately two to three years for the lines to be set up and production of our commercialized flu vaccines to commence. These facilities will also support our growth objectives though the introduction of novel products by housing the production lines for our EV71 vaccine, which is currently being studied under the first clinical trial application for an HFMD vaccine submitted in China. If approved, it will be the first vaccine or antiviral treatment available for HFMD worldwide."
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacture and commercialization of vaccines that protect against infectious diseases. Sinovac's vaccine products include Healive(R) (hepatitis A), Bilive(R) (combined hepatitis A and B), and Anflu(R) (influenza). Panflu(R) and Panflu.1(TM), Sinovac's pandemic influenza vaccine (H5N1) and H1N1 vaccine, have already been approved for government stockpiling. Sinovac is developing vaccines for a number of different infectious diseases including enterovirus 71, pneumococcal disease, Japanese encephalitis, haemophilus influenzae type b (Hib), meningitis, rabies, chickenpox, mumps and rubella. Sinovac is also conducting field trials for independently developed inactivated animal rabies vaccine.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law.
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