Sinovac Almost Triples Revenue in First Half

Sinovac Biotech Ltd. (SVA) released a much improved financial report for the first half of 2007. In comparison with 2006, the first six months of 2007 showed sales up 189% to $13.5 million and a profit of $3.5 million. In the year earlier, the company had a loss of nearly $1 million.

The Beijing company concentrates on vaccines. Its main product, an inactivated Hepatitis A vaccine called Healive, took advantage of the fact that its largest competitor is being phased out. Also, a lower cost vial packaging helped improve margins, which were very strong.

Sinovac said its gross margins were close to 86%. The company sold 2.45 million doses of Healive to raise $13.5 million in revenue.

Recently, Sinovac signed an agreement with GlaxoSmithKline (GSK) to co-promote Anflu, which is Sinovac’s split influenza vaccine (see story).

Sinovac is also developing Panflu, a vaccine for avian flu. China has given the company permission to begin a Phase II trial of the vaccine (see story), which is expected to begin soon. The company has completed enrollment of additional Phase I trials of a whole viron version of the vaccine, and it is beginning a Phase I trial of a split viron variant. Sinovac predicts that data from the trials will be released early in 2008.

In early trading after the announcement, Sinovac moved up 13 cents to $2.85. The company has a market capitalization of $111 million.

SVA 1-yr chart:

Disclosure: none.