BEIJING, Nov. 14, 2014 /PRNewswire/ -- Sinovac Biotech
Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical
products in China, today announced
its unaudited financial results for the third quarter and nine
months ended September 30, 2014.
Third Quarter 2014 Financial Highlights
(compared to the third quarter
2013)
- Quarterly sales were $17.1
million, a decrease of 22.3% from $22.1 million in the prior year period, which
includes recognition of a special order of pandemic influenza
vaccine (H5N1) revenue of $3.6
million. Excluding the impact from this special order, third
quarter sales of regular vaccine products decreased 7.4% from the
prior year period.
- Gross profit was $12.2 million, a
decrease of 16.7% from $14.6 million
in the prior year period. Excluding the special order of pandemic
influenza vaccine (H5N1) sales impact from 3Q13, gross profit
decreased 2.8% from $12.5 million in
the same period of last year. Gross margin was 70.9%, compared to
66.1% in the prior year period. Excluding the impact from the
special order of pandemic influenza vaccine (H5N1) in 3Q13, gross
margin was 70.9%, compared to 67.6% in the same period of last
year.
- Net income attributable to common stockholders was $0.1 million, or $0.00 per basic and diluted share, compared to
$2.3 million, or $0.04 per basic and diluted share, in the third
quarter of 2013.
Mr. Weidong Yin, Chairman,
President and CEO of Sinovac, commented, "In the third quarter, the
vaccine market in China began to
show signs of recovery after the lower demand in the first half of
the year. Although our regular sales were still down from the third
quarter last year, we are encouraged by the uptick in demand for
our seasonal flu vaccine from the private-pay market as well as
consistent hepatitis A vaccine tenders in the public market.
"We continue to expand our presence in international markets
with high sales potential for our vaccines. The Mexican Ministry of
Health recently renewed our GMP certificate for the seasonal
influenza and hepatitis A vaccines. Also during the third quarter,
we received our registration license for our seasonal influenza
vaccine in Chile.
"We are continuing to make progress on our pipeline vaccines.
The expert panel review for our EV71 vaccine is scheduled in
November 2014, which is one step
forward in the process of new drug appication of our EV71 vaccine.
We have also finalized the clinical trial protocol for our
pneumococcal polysaccharide vaccine (PPV) and expect to begin
clinical trials by the end of 2014," Mr. Yin concluded.
Third Quarter 2014 Business Highlights
Sales Update
Public Tenders Sinovac received notification that it has
been selected by the Jiangsu Centers for Disease Control and
Prevention to supply the Company's inactivated hepatitis A vaccine,
Healive, to the Expanded Program of Immunization (EPI) in 2015. As
one of two selected suppliers for the tender, Sinovac has committed
to supplying 55% of the total tender of Jiangsu Province, which represents growth over
Sinovac's contribution of 50% of the total tender amount in last
year. Sinovac anticipates revenue of approximately RMB 18 million (or approximately $2.9 million) from this tender.
Additionally, Sinovac has been selected by the Tianjin Centers
for Disease Control and Prevention to be the sole supplier of
inactivated hepatitis A vaccines to the EPI in Tianjin for 2015 through 2017. The total value
of this tender is approximately RMB 28
million (or approximately $4.6
million).
The Company expects to begin delivery of vaccines for both
tenders by the end of 2014, according to demand.
GMP Certificate for Mexico On August
29, 2014, Sinovac passed on-site inspections of its Shangdi
and Changping facilities and obtained a renewal of its GMP
certificate from the Mexico Ministry of Health for its seasonal
influenza and hepatitis A vaccines. The renewed GMP certificate is
valid until February 2016.
Seasonal Influenza Vaccine Registration License in
Chile Sinovac obtained a
registration license for its seasonal influenza vaccine from
Chile's Institute of Public
Health. The license is valid until October
2019.
R&D Update
sIPV On October 29, 2014,
the Beijing Drug Administration officially accepted Sinovac's
clinical trial application for its Sabin inactivated polio vaccine
(sIPV).
Unaudited Financial Results for Third
Quarter 2014
(In USD'000 except
percentage data)
|
|
2014
Q3
|
% of
Sales
|
2013
Q3
|
% of
Sales
|
Hepatitis A –
Healive
|
|
3,967
|
23.1%
|
5,252
|
23.8%
|
Hepatitis A&B –
Bilive
|
|
3,176
|
18.5%
|
5,355
|
24.3%
|
Hepatitis
vaccines
|
|
7,143
|
41.6%
|
10,607
|
48.1%
|
Influenza
vaccine
|
|
9,647
|
56.3%
|
8,417
|
38.1%
|
Animal
vaccine
|
|
102
|
0.6%
|
54
|
0.2%
|
Mumps
vaccine
|
|
254
|
1.5%
|
(571)
|
(2.6)%
|
Regular
sales
|
|
17,146
|
100.0%
|
18,507
|
83.8%
|
H5N1
|
|
-
|
-
|
3,568
|
16.2%
|
Total
sales
|
|
17,146
|
100.0%
|
22,075
|
100.0%
|
Cost of goods
sold
|
|
4,986
|
29.1%
|
7,474
|
33.9%
|
Gross
profit
|
|
12,160
|
70.9%
|
14,601
|
66.1%
|
In the third quarter 2014, total sales were $17.1 million, a decrease of 22.3% from
$22.1 million during the same period
in 2013. However, during the third quarter 2013, the Company
recognized revenue of $3.6 million
from sales of its pandemic influenza vaccine (H5N1) to the
government stockpiling program. Excluding the impact of this
special order, quarterly sales decreased 7.4% YoY in the third
quarter. According to a joint notice on reducing and unifying the
value added tax (VAT) rate published by the Ministry of Finance of
China and State Administration of
Taxation of China, the VAT rate
applied to the sales of vaccine products was reduced to 3% from 6%
effective July 1, 2014. Excluding the
impact of the VAT rate reduction, quarterly sales decreased 10.1%
YoY in the third quarter.
Gross profit was $12.2 million in
the third quarter 2014, compared to $14.6
million in the prior year period. Gross margin increased to
70.9% from 66.1% in the prior year period. Excluding the impact
from the sales of pandemic influenza vaccine (H5N1) in the third
quarter of last year, gross margin was 70.9%, compared to 67.6% in
the same period of last year. The increase in gross margin was
primarily due to increased efficiency in the Anflu manufacturing
processes.
Selling, general and administrative expenses for the third
quarter 2014 were $8.5 million,
compared to $9.4 million in the same
period of 2013.
R&D expenses for the third quarter of 2014 were $2.5 million, a $0.5
million increase over the same period in 2013. This increase
is attributable to the continued advancement of sIPV and process
optimization for PPV.
Net income attributable to common stockholders for the third
quarter of 2014 was $0.1 million, or
$0.00 per basic and diluted share,
compared to $2.3 million, or
$0.04 per basic and diluted share, in
the same period last year.
Unaudited Financial Results for First Nine Months of
2014
(In USD'000 except
percentage data)
|
|
2014
1-9
|
% of
Sales
|
2013
1-9
|
% of
Sales
|
Hepatitis A –
Healive
|
|
15,519
|
36.3%
|
18,451
|
37.2%
|
Hepatitis A&B –
Bilive
|
|
15,613
|
36.5%
|
17,935
|
36.2%
|
Hepatitis
vaccines
|
|
31,132
|
72.8%
|
36,386
|
73.4%
|
Influenza
vaccine
|
|
9,708
|
22.7%
|
8,747
|
17.6%
|
Animal
vaccine
|
|
147
|
0.3%
|
132
|
0.3%
|
Mumps
vaccine
|
|
1,693
|
4.0%
|
746
|
1.5%
|
Regular
sales
|
|
42,680
|
99.8%
|
46,011
|
92.8%
|
H5N1
|
|
102
|
0.2%
|
3,568
|
7.2%
|
Total
sales
|
|
42,782
|
100.0%
|
49,579
|
100.0%
|
Cost of goods
sold
|
|
11,289
|
26.4%
|
14,327
|
28.9%
|
Gross
profit
|
|
31,493
|
73.6%
|
35,252
|
71.1%
|
Total sales for the first nine months of 2014 were $42.8 million, a decrease of 13.7% from
$49.6 million during the prior year
period. Excluding the sales revenue of the special order of
pandemic influenza vaccine (H5N1) recognized in the third
quarter of 2013, sales for the first nine months were $42.7 million, a decrease of 7.2% YoY from
$46.0 million. Excluding the impact
of the VAT rate reduction, sales for the first nine months
decreased 8.3% YoY.
Gross profit for the first nine months of 2014 was $31.5 million, a decrease of 10.7% from
$35.3 million in the same period of
2013. Gross margin was 73.6%, compared to 71.1% in the prior year
period. Excluding the impact from the sales of pandemic influenza
vaccine (H5N1) in the third quarter of 2013, gross margin was
73.6%, consistent with 73.9% in the same period of last year.
Selling, general and administrative expenses for the first nine
months of 2014 were $24.9 million,
compared to $25.3 million for the
same period of 2013.
R&D expenses in the first nine months of 2014 were
$7.5 million, compared to
$5.9 million in the same period of
2013. These expenses are primarily related to the continued
development and process optimization of the Company's pipeline
vaccine candidates, sIPV and PPV.
Net loss attributable to stockholders in the first nine months
of 2014 was $2.2 million or
$(0.04) per basic and diluted share,
compared to a net income of $1.6
million, or $0.03 per basic
and diluted share, in the same period of 2013.
As of September 30, 2014, cash and
cash equivalents totaled $94.4
million, compared to $107.2
million as of December 31,
2013. Net cash used in operating activities was $16.1 million during the first nine months of
2014. Net cash used in investing activities was $7.3 million, which was primarily used for
payment of property, plant and equipment for the Company's PPV
production facility and the Changping facility. Net cash provided
by financing activities was $11.6
million during the first nine months of 2014, including loan
proceeds of $17.8 million which were
offset by loan repayment of $10.0
million. As of September 30,
2014, the Company had $44.5
million of bank loans due within one year. Sinovac's cash
and cash equivalents position of $94.4
million is sufficient to meet both these loan repayment
obligations and the Company's operational requirements.
Conference Call Details
Sinovac will host a conference call on Monday, November 17, 2014 at 8:00 a.m. ET (November 17,
2014 at 9:00 p.m. China
Standard Time) to review the Company's financial results and
provide an update on recent corporate developments. To access
the conference call, please dial 1-877-407-9039 (USA) or 1-201-689-8470 (International). A
replay of the call will be available from 11:00 a.m. ET on November
17, 2014 through December 1,
2014. To access the replay, please dial 1-877-870-5176
(USA) or 1-858-384-5517
(International) and reference the replay pin number 13595202.
A live audio webcast of the call will also be available on the
Investor Relations section of the Company's website at
www.sinovac.com. A webcast replay will be available on the
Company's website for 30 days following the call, beginning
November 17, 2014.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that
focuses on the research, development, manufacturing, and
commercialization of vaccines that protect against human infectious
diseases. Sinovac's product portfolio includes vaccines against
hepatitis A and B, seasonal influenza, H5N1 pandemic influenza
(avian flu), H1N1 influenza (swine flu), mumps and canine rabies.
In 2009, Sinovac was the first company worldwide to receive
approval for its H1N1 influenza vaccine, which it has supplied to
the Chinese Government's vaccination campaign and stockpiling
program. The Company is also the only supplier of the H5N1 pandemic
influenza vaccine to the government stockpiling program. Sinovac
has filed a new drug application with the China Food and Drug
Administration for its proprietary enterovirus 71 vaccine, having
been proven effective in preventing hand, foot and mouth disease in
infants and children during its phase III clinical trial. The
Company is currently developing a number of new products including
a Sabin-strain inactivated polio vaccine, pneumococcal
polysaccharides vaccine, pneumococcal conjugate vaccine and
varicella vaccine. Sinovac primarily sells its vaccines in
China. The Company has exported
select vaccines to Mexico,
Mongolia, Nepal, and the Philippines. Sinovac has
recently been granted a license to commercialize its hepatitis A
vaccine and seasonal influenza vaccine in
Chile. For more information,
please visit the Company's website at www.Sinovac.com.
Contact
Sinovac Biotech Ltd.
Helen Yang / Chris Lee
Tel: +86-10-8279-9659 / 9696
Fax: +86-10-6296-6910
Email: ir@sinovac.com
ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com
SINOVAC BIOTECH
LTD.
|
|
|
Consolidated
Balance sheets
|
|
|
As of September
30, 2014 and December 31, 2013
|
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
Current
assets
|
September 30,
2014
|
December 31,
2013
|
|
(Unaudited)
|
|
Cash and cash
equivalents
|
94,354
|
107,242
|
Accounts
receivable
|
40,852
|
31,927
|
Inventories
|
18,892
|
14,329
|
Prepaid expenses and
deposits
|
1,411
|
1,150
|
Deferred tax
assets
|
1,836
|
2,602
|
Total current
assets
|
157,345
|
157,250
|
|
|
|
Property, plant and
equipment
|
68,157
|
67,963
|
Prepaid land lease
payments
|
10,588
|
10,948
|
Long-term
inventories
|
4,061
|
2,781
|
Long-term prepaid
expenses
|
38
|
154
|
Prepayment for
acquisition of equipment
|
1,392
|
708
|
Deferred tax
assets
|
298
|
117
|
Licenses
|
457
|
772
|
Total
assets
|
242,336
|
240,693
|
|
|
|
Current
liabilities
|
|
|
Bank loans and
current portion of long-term debt
|
44,505
|
16,217
|
Loan from a
non-controlling shareholder
|
2,625
|
3,324
|
Accounts payable and
accrued liabilities
|
23,326
|
28,037
|
Income tax
payable
|
460
|
246
|
Deferred
revenue
|
345
|
875
|
Deferred government
grants
|
454
|
458
|
Total current
liabilities
|
71,715
|
49,157
|
|
|
|
Deferred government
grants
|
7,782
|
4,746
|
Long-term
debt
|
11,803
|
32,146
|
Deferred
revenue
|
10,753
|
11,005
|
Total long term
liabilities
|
30,338
|
47,897
|
|
|
|
Total
liabilities
|
102,053
|
97,054
|
|
|
|
Commitments and
contingencies
|
|
|
Equity
|
|
|
Preferred
stock
|
-
|
-
|
Common
stock
|
56
|
56
|
Additional paid-in
capital
|
107,950
|
107,393
|
Accumulated other
comprehensive income
|
12,875
|
14,141
|
Statutory surplus
reserves
|
11,808
|
11,808
|
Accumulated
deficit
|
(6,869)
|
(4,714)
|
Total
stockholders' equity
|
125,820
|
128,684
|
|
|
|
Non-controlling
interests
|
14,463
|
14,955
|
Total
equity
|
140,283
|
143,639
|
Total liabilities
and equity
|
242,336
|
240,693
|
SINOVAC BIOTECH
LTD.
|
|
|
|
|
|
Consolidated
Statements of Comprehensive Income (loss)
|
|
|
|
|
For the three and
nine months ended September 30, 2014 and 2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
|
|
|
Three months
ended September 30
|
|
Nine months
ended September 30
|
|
2014
|
2013
|
|
2014
|
2013
|
Sales
|
17,146
|
22,075
|
|
42,782
|
49,579
|
Cost of
sales
|
4,986
|
7,474
|
|
11,289
|
14,327
|
Gross
profit
|
12,160
|
14,601
|
|
31,493
|
35,252
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
8,515
|
9,392
|
|
24,896
|
25,335
|
Provision for
doubtful accounts
|
205
|
171
|
|
499
|
1,057
|
Research and
development expenses
|
2,545
|
2,034
|
|
7,512
|
5,923
|
Loss (gain) on
disposal and Impairment of property, plant and equipment
|
1
|
-
|
|
30
|
(2)
|
Total
operating expenses
|
11,266
|
11,597
|
|
32,937
|
32,313
|
Operating
income (loss)
|
894
|
3,004
|
|
(1,444)
|
2,939
|
|
|
|
|
|
|
Interest and
financing expenses
|
(905)
|
(735)
|
|
(2,487)
|
(2,168)
|
Interest
income
|
575
|
544
|
|
2,120
|
1,568
|
Other income
(expenses) - net
|
(38)
|
134
|
|
179
|
141
|
Income
(loss) before income taxes and non-controlling
interests
|
526
|
2,947
|
|
(1,632)
|
2,480
|
Income tax
expense
|
(419)
|
(76)
|
|
(842)
|
(62)
|
|
|
|
|
|
|
Net Income
(loss)
|
107
|
2,871
|
|
(2,474)
|
2,418
|
Less: (Income) loss
attributable to the non-controlling interests
|
(18)
|
(561)
|
|
319
|
(798)
|
Net Income
(loss) attributable to stockholders of Sinovac
|
89
|
2,310
|
|
(2,155)
|
1,620
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
|
|
Foreign currency
translation adjustments
|
964
|
249
|
|
(1,439)
|
1,602
|
Total
comprehensive income (loss)
|
1,071
|
3,120
|
|
(3,913)
|
4,020
|
Less:
comprehensive (income) loss attributable to non-controlling
interests
|
(146)
|
(588)
|
|
492
|
(966)
|
Comprehensive income (loss) attributable to
stockholders of Sinovac
|
925
|
2,532
|
|
(3,421)
|
3,054
|
|
|
|
|
|
|
Weighted
average number of shares of
|
|
|
|
|
|
Basic
|
55,722,435
|
55,382,329
|
|
55,658,173
|
55,235,198
|
Diluted
|
56,118,063
|
55,882,837
|
|
55,658,173
|
55,684,691
|
|
|
|
|
|
|
Earning per
share
|
|
|
|
|
|
Basic
|
0.00
|
0.04
|
|
(0.04)
|
0.03
|
Diluted
|
0.00
|
0.04
|
|
(0.04)
|
0.03
|
SINOVAC BIOTECH
LTD.
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
For the three and
nine months ended September 30, 2014 and 2013
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Expressed in
thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30
|
|
September
30
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
107
|
$
|
2,871
|
|
$
|
(2,474)
|
$
|
2,419
|
Adjustments
to reconcile net income (loss) to net cash
|
|
|
|
|
|
|
|
|
|
provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
- deferred
income taxes
|
|
122
|
|
76
|
|
|
545
|
|
62
|
- stock-based
compensation
|
|
72
|
|
72
|
|
|
215
|
|
209
|
- inventory
provision
|
|
42
|
|
3
|
|
|
584
|
|
770
|
- provision for
doubtful accounts
|
|
205
|
|
171
|
|
|
499
|
|
1,057
|
- impairment of
equipment and loss on disposal
|
|
1
|
|
-
|
|
|
30
|
|
(2)
|
- depreciation
of property, plant and equipment and amortization of
licenses
|
736
|
|
1,581
|
|
|
5,270
|
|
4,928
|
- amortization
of the prepaid land lease payments
|
|
66
|
|
69
|
|
|
198
|
|
207
|
- accretion
expenses
|
|
30
|
|
19
|
|
|
85
|
|
71
|
Changes
in:
|
|
|
|
|
|
|
|
|
|
- accounts
receivable
|
|
(5,753)
|
|
(7,165)
|
|
|
(9,407)
|
|
(15,453)
|
-
inventories
|
|
976
|
|
735
|
|
|
(6,808)
|
|
(5,922)
|
- income tax
payable
|
|
297
|
|
-
|
|
|
297
|
|
-
|
- prepaid
expenses and deposits
|
|
(425)
|
|
(428)
|
|
|
(773)
|
|
(173)
|
- deferred
revenue
|
|
69
|
|
(3,483)
|
|
|
(616)
|
|
(4,711)
|
- accounts
payable and accrued liabilities
|
|
(1,334)
|
|
101
|
|
|
(3,793)
|
|
1,856
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(4,789)
|
|
(5,378)
|
|
|
(16,148)
|
|
(14,682)
|
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
- Loan
proceeds
|
|
8,920
|
|
3,074
|
|
|
17,837
|
|
13,858
|
- Loan
repayments
|
|
(1,463)
|
|
-
|
|
|
(10,005)
|
|
(162)
|
- Proceeds from
issuance of common stock,
|
|
|
|
|
|
|
|
|
|
net of
share issuance costs
|
|
84
|
|
138
|
|
|
336
|
|
555
|
- Proceeds from
shares subscribed
|
|
(74)
|
|
31
|
|
|
6
|
|
203
|
- Government
grants received
|
|
3,244
|
|
71
|
|
|
3,429
|
|
595
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
10,711
|
|
3,314
|
|
|
11,603
|
|
15,049
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
|
- Acquisition
of property, plant and equipment
|
|
(1,624)
|
|
(768)
|
|
|
(7,307)
|
|
(3,437)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(1,624)
|
|
(768)
|
|
|
(7,307)
|
|
(3,437)
|
|
|
|
|
|
|
|
|
|
|
Exchange gain
(loss) on cash and cash equivalents
|
|
422
|
|
(188)
|
|
|
(1,036)
|
|
855
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
4,720
|
|
(3,020)
|
|
|
(12,888)
|
|
(2,215)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
|
89,634
|
|
92,046
|
|
|
107,242
|
|
91,241
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of year
|
$
|
94,354
|
$
|
89,026
|
|
$
|
94,354
|
$
|
89,026
|
SOURCE Sinovac Biotech Ltd.