Sinovac Gets Significant Order for H1N1 Flu Vaccine

Sinovac Biotech (NYSE Amex: SVA) received the first order for its influenza A (H1N1) vaccine from the Beijing government. The initial order, consisting of 4 million doses, will be administered to 2 million high risk people. Following delivery of the first order at the end of September, Sinovac expects additional orders that will bring the total to 10 million doses. All of these will be for Beijing area citizens.

Sinovac completed construction of the H1N1 virus seed bank necessary to produce a virus antigen on June 14, 2009. It began production of the first batch of H1N1 vaccine immediately after and expects to complete production of the first batch by the end of July.

The orders are significant for Sinovac. In 2008, 88% of the company’s $46.5 million of sales came from its hepatitis A vaccine, Healive. Only 9% (1.6 million doses) came from Anflu, the company’s seasonal flu vaccine. A 10 million dose order would transform its flu vaccine platform into an important source of income instead of a relatively minor addition to Healive sales.

Sinovac also produces a pandemic flu called Panflu., which is being stockpiled as a protective vaccine in case of an outbreak of avian flu. In March of this year, the company received Good Manufacturing Practice (GMP) certification for its recently opened filling and packaging production facility. The new facility has the capability to produce 20 million doses annually. That figure can be doubled through more intense scheduling of production activities.

Disclosure: none.