During the second quarter of 2009, Sinovac has reported sales of $20.2m, an increase of 21.2% from $16.5m in the second quarter of 2008. The gross profit for the quarter was $16.3m, with a gross margin of 81%, compared to $13.9m and a gross margin of 84%, for the same period of 2008.
Second quarter 2009 operating income was reported to be $10.7m, compared to operating income of $7.0m in the prior year. Net income for second quarter of 2009 was $5.8m, or $0.14 per diluted share, up 75% compared to net income of $3.3m, or $0.08 per diluted share, in the same period of 2008.
For the six month ended period, 2009, the company reported sales of $26.6m, an increase of 4.7% from $25.4m for the same period in 2008. Sinovac also recorded a gross profit of $21.4m, with a gross margin of 80%, compared to $21.7m and a gross margin of 86%, for the prior year period. Operating income was $11.3m, compared to an operating income of $10.2m in the prior year period. The net income was $5.8m, or $0.14 per diluted share, compared to net income of $4.9m, or $0.12 per diluted share, in the same period of 2008.
Weidong Yin, chairman, president and CEO of Sinovac, said: We are very pleased with our second quarter results, with sales up 21% and net income up 74%. Our revenue growth in the quarter was partly driven by increased sales of our inactivated hepatitis A vaccine, Healive, to the public market, as we worked to fulfill the previously announced purchase order from China’s Ministry of Public Health (MOH). Sinovac fulfilled and recorded 89% of the original order for $12.8m worth of doses in the second quarter of 2009. Going forward, we will continue to focus on increasing our penetration of both the private and public markets.We expect to deliver the initial order of vaccines for 2 million people to the Beijing government by the end of September 2009. We plan to apply for the Production License for H1N1 vaccine in compliance with SFDA’s regulations.
We remain very excited about our growth prospects for 2009 and beyond. In addition to the H1N1 vaccine, we have a robust pipeline of other investigational vaccines, including enterovirus 71 (EV 71), pneumococcal conjugated vaccine, and Japanese encephalitis. Overall, our objective for the next three to five years is to have one or two product candidates per year entering into clinical trials beginning in 2010 and one or two products launched into the market per year commencing in 2012. In addition to our organic growth strategy, we have the financial flexibility to selectively pursue acquisition candidates that will help to expand our product pipeline, due to $47m of cash and cash equivalents on our balance sheet. Previously, we projected revenues of $55m to $60m for the full year 2009. Based largely on expected demand for our H1N1 vaccine, we believe that our 2009 revenues will exceed expectations. However, due to uncertainty on the timing of future orders, we are not able to further quantify our expectations.”