Sinovac Wins OK to Produce H1N1 Vaccine

Sinovac Biotech Ltd. (NYSE: SVA) has received an SFDA production license for Panflu.1, the company’s H1N1 vaccine. The SFDA approved the single-injection administration of the vaccine as sufficient to provide immunogenicity. As expected, the approval indicates the drug can be given to people from 3 to 60 years of age.

The SFDA’s action was almost a foregone conclusion after a panel of experts gave Panflu.1 their blessing earlier this week.

Thursday, Sinovac announced an agreement with Boryung Pharmaceutical Company Limited of Korea, which will allow Boryung to act as Sinovac’s agent in obtaining approval of Panflu.1 in Korea and market the vaccine there. Sinovac pointedly stated that price, volume, delivery schedule and other details of the agreement have not been determined as yet.

So far, the company has not speculated on the effect of H1N1 vaccine sales on its financial year. Sinovac has the capacity to manufacture 30 million doses of the vaccine annually.

Because of media emphasis on swine flu news, Sinovac’s stock price remains volatile. The company’s stock opened with an advance of near $1.70 at $10.48, but has settled back to $9.43, a rise of 90 cents or 11%. Volume is extremely heavy. During the last five years, Sinovac’s share price topped out at approximately $7 on two separate occasions. It broke through that level and hit a high of $12.50 in Monday’s session.

Disclosure: none.