Sinovac Biotech (SVA) Make Big Move On Flu Vaccine
Sinovac (SVA) is up 17% to $6.85 on the announcement that the Beijing Public Health Bureau has selected Sinovac as one of the four manufacturers to supply Anflu®, Sinovac’s seasonal influenza vaccine, for the benefit of the citizens of Beijing. The Beijing Public Health Bureau completed the bidding process for the purchase of flu vaccines and corresponding services for 2009 on August 26, 2009.
In order to prevent and control infectious disease and to avoid contracting both the seasonal flu virus and the H1N1 virus, 2.8 million Beijing citizens will receive free inoculations against the seasonal influenza.
Sinovac recently reported top-line preliminary results of H1N1 vaccine clinical trials. The results show the H1N1 vaccine developed by Sinovac is quite safe and has a good immunogenicity profile.
Sinovac shares are up almost 10x from their 52-week high.
Second quarter 2009 operating income was $10.7 million, compared to operating income of $7.0 million in the prior year. Net income for the second quarter of 2009 included $126,000 in net interest and financing expenses and $2.1 million in income tax expenses. Net income for the same period of 2008 included $541,000 of net interest expense and $1.6 million of income tax expense. Net income for second quarter of 2009 was $5.8 million, or $0.14 per diluted share, up 75% compared to net income of $3.3 million, or $0.08 per diluted share, in the same period of 2008.
Sinovac has about $47 billion in cash on its balance sheet
Douglas A. McIntyre
