Sinovac To Co-Promote Flu Vaccine With GlaxoSmithKline, Seeks Additional Partnerships

Sinovac Biotech Ltd. (SVA), a China-based maker of vaccines, signed an Exclusive Promotion Service Agreement with the China division of GlaxoSmithKline (GSK) to promote and market Anflu. Anflu is a seasonal flu vaccine, developed and manufactured by Sinovac. As we reported earlier (see story), Anflu has not been a big seller for Sinovac in the past.

Under the terms of the agreement, GSK China will market the drug to adults, while Sinovac will use its pediatric distribution network, which is already in place, to distribute the vaccine to children.

In a release, Mr. Weidong Yin, President and CEO of Sinovac, said that the arrangement with GSK takes advantage of the respective strengths of both organizations, and would represent a big opportunity for Anflu. He further said that the company would pursue similar partnerships with established global pharmaceutical companies as a way to increase revenues for Sinovac.

In addition to its flu vaccine, Sinovac makes and markets vaccines for hepatitis A (Healive) as well as combined hepatitis A and B (Bilive). The company is also working on an Asian flu vaccine, which received clearance last month to begin its Phase II trial, and vaccines for Japanese encephalitis and SARS.

Recently, the company also announced that it had been repaid in full on a 7.7 million RMB ($1.05 million) loan to a former director, Heping Wang. The loan was part of Sinovac’s acquisition of its manufacturing and R&D division, Tangshan Yian Biological Engineering Co., in January 2004. While such loans are typical in China, it violated provisions of Sarbanes-Oxley, and Sinovac was under SEC pressure to get the loan off its financial statements.

Disclosure: none.