Sinovac on Track to See Sizable Revenue from Flu Vaccines

| About: Sinovac Biotech, (SVA)

Sinovac Biotech (NASDAQ:SVA) has received a very large order for 5.2 million doses of its H1N1 vaccine, Panflu.1. This is the third order Sinovac has received from various official China agencies, bringing the total to 11.5 million doses. Of the 5.2 million doses in the latest agreement, 2.9 million will be allocated to various provincial and municipal authorities, while the remaining 2.3 million will be placed in the national stockpiling plan of China's Ministry of Industry and Information Technology.

Sinovac must complete delivery of 2.9 million doses to the appointed provincial and municipal governments by the end of this year.

Regarding a separate program, Sinovac also said it won the bidding process to supply its seasonal flu vaccine, Anflu, to the Shanghai government. Previously, the majority of Anflu went into the private market. Sinovac attributed part of its success to the increased interest in vaccines and general public health from its municipal government. Certain citizens of Shanghai are eligible for free flu inoculations as part of an expanded program.

Traditionally, Sinovac has made the majority of its revenue from its hepatitis B vaccine, Healive. Its flu vaccines contributed less that 10% of its sales. However, this year, with swine flu creating awareness of vaccines, Sinovac is on track to realize a sizable revenue contribution from its Anflu and Panflu. So far, Sinovac has meticulously documented its sales volume, but it has not made any revenue projections.

Disclosure: none.

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Tagged: , Biotechnology, China
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