Sinovac reports surge in annual sales

The growth was attributable to strong sales of the company’s inactivated hepatitis A vaccine, Healive, and ongoing marketing initiatives in support of the company’s seasonal influenza vaccine, Anflu. Gross profit for 2007 was $27 million, with a gross margin of 80.6%, compared to $11.1 million and 72.4%, respectively, for 2006. Operating income was $13.5 million for the full year 2007, compared to $440,000 for 2006. Net income for the twelve months ended December 31, 2007 was $7.7 million, or $0.19 per diluted share, compared to a net loss of $696,000, or $0.02 per diluted share, for 2006.

For the fourth quarter 2007, sales increased 49% to $9.2 million, compared to $6.2 million in the fourth quarter of 2006. Gross profit for fourth quarter of 2007 was $6.3 million, with a gross margin of 68.3%, compared to $4.9 million and 78.9%, respectively, for the same period of 2006. Operating income was $3.3 million for the fourth quarter of 2007, compared to $588,000 in the same period of 2006. Net income for the fourth quarter of 2007 was $2 million, or $0.05 per diluted share, compared to $181,000, or $0.005 per diluted share, in the same period of 2006.

Weidong Yin, chairman, president and CEO of Sinovac, said: “The fourth quarter results marked our third sequential profitable quarter. Our quarterly sales reflected the continued demand for our lead product, Healive, our inactivated hepatitis A vaccine. Healive was recently selected by the Beijing Centers for Disease Control and Prevention for the hepatitis A vaccination program.”