BEIJING, July 14 /Xinhua-PRNewswire/ -- Sinovac Biotech Ltd. (Amex:
SVA -
News), a leading provider of biopharmaceutical products in China, announced financial results for its fiscal year ended December 31, 2005. Sales increased 33.4% to $8,608,000 in 2005 from $6,454,000 in 2004.
Sinovac's CEO, Mr. Weidong Yin commented, "We had an excellent year in 2005: we received final regulatory approval for two new vaccines, began human clinical trials for a pandemic flu vaccine and increased our sales by 33.4%. This year we will strive to increase the production and sales of Healive in order to capture a bigger share of China's hepatitis A vaccine market and continue to promote our combined hepatitis A and B vaccine, Bilive, as a high- end product. In addition, we expect to begin sales of our Anflu(TM) product in our first full flu season. As always, we are pressing ahead with our R&D programs. We recently completed phase I clinical trials for our H5N1 pandemic influenza vaccine. We intend to apply for authorization from the China SFDA to begin phase II trials as soon as possible, in our efforts to bring this product to market to meet the health threats posed by the pandemic flu to the global community. We are also developing a vaccine against Japanese encephalitis. Finally, I want to state that we are taking our fiscal and corporate governance responsibilities very seriously. We found some errors and are making every effort to correct them and prevent future mistakes."
Gross profit increased 38.7% to $6,262,000 in 2005 from $4,516,000 in 2004 and gross profit margin was 72.7% and 70.0% respectively.
Net loss increased by 9.5% to $5,111,000 in 2005 from $4,667,000 in 2004. The increase in net loss was primarily due to increases in selling, general and administrative (SG&A) expenses, which increased 16.2% to $10,278,000 in 2005 from $8,843,000 in 2004. SG&A expenses include sales expenses, stock- based compensation expenses, and withholding tax liability associated with the exercise of stock options by Sinovac's employees. The increase in sales expenses is primarily due to the exploration of new markets and efforts to improve sales networks and sales strategy in 2005. Stock-based compensation expense decreased to $3,356,000 in 2005 from $4,428,000 in 2004. However, Sinovac believes it may be liable for PRC withholding taxes associated with the exercise of stock options by its employees and has accordingly accrued a current liability of $1,455,000, which was charged to SG&A expenses in 2005.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacture and commercialization of vaccines that protect against human infectious diseases. Sinovac's vaccines include Healive(TM) (hepatitis A), Bilive(TM) (combined hepatitis A and B) and Anflu(TM) (influenza). Sinovac is currently developing human vaccines against the H5N1 strain of pandemic influenza, Japanese encephalitis and SARS.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward- looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
CONTACT:
Craig H. Bird
Segue Investor Relations
Phone: (215) 885 - 4981
Fax: (215) 885 - 4982
About SINOVAC
Sinovac Biotech Ltd. (SINOVAC) is a China-based global biopharmaceutical company, with a mission of "supply vaccines to eliminate human diseases", the company specializes in the research, development, manufacturing and commercialization of vaccines and related biological products that protect against human infectious diseases.
The company's diversified portfolio includes vaccines for influenza, viral hepatitis, varicella, Hand-Foot-Mouth disease (HFMD), poliomyelitis, pneumococcal disease, etc., of which 3 vaccines have been prequalified by WHO, including inactivated hepatitis A vaccine Healive®, Sabin-strain inactivated polio vaccine (sIPV), and varicella vaccine.
SINOVAC has a leading edge in developing vaccines to combat infectious disease outbreaks and was among the first to initiate R&D during major public health emergencies, including SARS, H5N1, H1N1, and COVID-19. The company developed the world's first inactivated SARS vaccine (Phase I completed), China's first H5N1 influenza vaccine (Panflu®), the world's first H1N1 influenza vaccine (Panflu.1®), and CoronaVac®, the most widely used inactivated COVID-19 vaccine globally.
Beyond its marketed portfolio, the company is advancing a robust pipeline that includes combination vaccines,recombinant protein vaccines and next-generation platforms such as mRNA technologies and antibodies.
With a long-standing commitment to innovation and global health, SINOVAC is expanding its global footprint by strengthening partnerships with research institutions, international organizations, and local partners. Through broader market presence, technological cooperation, and localized production, the company aims to accelerate vaccine development and supply, enhance regional access to high-quality products, and better address unmet medical needs while improving preparedness for future pandemics.
For more information, please see the Company’s website at www.sinovac.com.
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