Craig Bird

Sinovac to Supply Vaccines to China Earthquake Victims

"A Paradigm Shift in China’s Crisis Relief Efforts; the Convergence of Communism and a Market Economy"

PART II

According to Linkwell Chairman and CEO, Mr. Xuelian Bian, the Company’s response compares to the scale and efforts given during the 2002 - 2003 SARS epidemic. High level operations are expected to last through mid-June. Mr. Bian commented, “We are working with several emergency organizations, with authorization from the MOH Emergency Response Office, to provide disinfectant training and products throughout the affected region.”

According to independent news sources, More than 5,000 health personnel are working to disinfect China's earthquake-hit villages, and doctors and nurses are stationed round the clock in refugee camps to try to prevent survivors from falling sick. Linkwell is providing emergency training for disinfectant operators and disinfectant products, primarily to NGOs, including the Red Cross and the Communist Youth League. It is expected that the MOH will continue to recognize Linkwell as an authorized provider of products and services in future health crises.

There are some key differences between Sinovac’s and Linkwell’s contributions. According to Sinovac, it is donating vaccines, services and money, while Linkwell is donating some products and services, discounting others, and getting full payment for the majority of its products. The key reason for this is that Sinovac is donating to the MOH, while Linkwell, as an MOH authorized provider of its products and services, is selling its products primarily to non-government relief organizations, such as the Red Cross.

Linkwell’s manufacturing operations are going around the clock to meet disinfection requirements and emergency support teams are on call 24/7. The products are distributed via military transportation to the emergency areas; usually by air. “We are proud to have such a vital role and help in this relief effort” said Mr. Bian, “The products we are providing are used to control infection in the environment and on material surfaces and hand disinfection.”

China’s utilization of Linkwell and Sinovac is a fungible process for leveraging non-government public companies for government requirements. However, this does not come as some cost. In response to emergency relief efforts, Linkwell has suspended its normal disinfection and pest control training and licensing program and converted to emergency training for disinfection operators going into disaster areas. Once this is completed, the Company will revert to normal operations, showing once again that a nimble public company can be fungible between government and the public market.

Is this a paradigm shift for China’s emergency response system? It appears so, “Our relationship with MOH is very good and we are prepared to respond very quickly to future relief efforts,” said Linkwell’s COO, Mr. Arthur Huang, “Since our company was founded from the Second Military Medical University, we have a common culture, language and organizing process as the PLA, who are usually the first responders to disasters.” It is also quite possible that Sinovac will be taking a larger role in the future, since its relationship with MOH appears to becoming closer.

One thing appears abundantly clear; once again China’s central government has managed to forge together the communist government system with a modern market economic system.