BEIJING, Feb. 15 Sinovac Biotech Ltd. (Nasdaq: SVA),a leading China-based vaccine manufacturer, today announced the completion byits subsidiary, Sinovac Beijing, of the acquisition of buildings and land userights. The total consideration for the purchase is approximately RMB120million ($17.6 million), which will be financed from working capital. Theinitial payment of RMB56.5 million ($8.3 million) will be paid before February20, 2010 and the balance of the purchase price will be paid in threeinstallments within three years.
Sinovac Beijing is acquiring five existing buildings with a total built-out area of 32,322.66 square meters on 29,021.61 square meters of land,located in Changping District, Beijing, about half hour driving away from ourheadquarter. The site was previously used to manufacture medicinal products.Sinovac plans to set up two new production lines with a combined annualproduction capacity of approximately 40 million doses, a filling and packagingline, a warehouse and an animal house. At the site, the Company willmanufacture the enterovirus 71 (EV71) vaccine, which causes hand, foot, andmouth disease (HFMD), and its other currently marketed flu vaccines.
Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "Weare pleased to complete the acquisition of this previously announcedtransaction, which supports our growth strategy. The Changping site willenable us to expand our production capacity, as the site will house two state-of-the-art production lines and other necessary supporting functions. Weanticipate that it will take approximately two to three years for the lines tobe set up and production of our commercialized flu vaccines to commence. Thesefacilities will also support our growth objectives though the introduction ofnovel products by housing the production lines for our EV71 vaccine, which iscurrently being studied under the first clinical trial application for an HFMDvaccine submitted in China. If approved, it will be the first vaccine orantiviral treatment available for HFMD worldwide."
Sinovac Biotech Ltd. is a China-based biopharmaceutical company thatfocuses on the research, development, manufacture and commercialization ofvaccines that protect against infectious diseases. Sinovac's vaccine productsinclude Healive(R) (hepatitis A), Bilive(R) (combined hepatitis A and B), andAnflu(R) (influenza). Panflu(R) and Panflu.1(TM), Sinovac's pandemic influenzavaccine (H5N1) and H1N1 vaccine, have already been approved for governmentstockpiling. Sinovac is developing vaccines for a number of differentinfectious diseases including enterovirus 71, pneumococcal disease, Japaneseencephalitis, haemophilus influenzae type b (Hib), meningitis, rabies,chickenpox, mumps and rubella. Sinovac is also conducting field trials forindependently developed inactivated animal rabies vaccine.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaningof the safe harbor provisions of the Private Securities Litigation Reform Actof 1995. All statements other than statements of historical fact in thisannouncement are forward-looking statements. These forward-looking statementsinvolve known and unknown risks and uncertainties and are based on currentexpectations, assumptions, estimates and projections about the Company and theindustry in which the Company operates. The Company undertakes no obligationto update forward-looking statements to reflect subsequent occurring events orcircumstances, or to changes in its expectations, except as may be required bylaw.For more information, please contact: Sinovac Biotech Ltd. Helen G. Yang Tel: +86-10-8289-0088 x9871 Fax: +86-10-6296-6910 Email: firstname.lastname@example.org Investors The Ruth Group Amy Glynn/Stephanie Carrington Tel: +1-646-536-7023/7017 Email: email@example.com firstname.lastname@example.org Media The Ruth Group Janine McCargo Tel: +1-646-536-7033 Email: email@example.com
SOURCE Sinovac Biotech Ltd.