BEIJING, May 14, 2015
/PRNewswire/ -- Sinovac Biotech Ltd. (SVA), a leading provider of
biopharmaceutical products in China, today announced its unaudited financial
results for the first quarter ended March
31, 2015.
First Quarter 2015 Financial Highlights
(Compared to the first quarter 2014)
- Quarterly sales were $9.3million,
a decrease of 31.6% from $13.5
million in the prior year period.
- Gross profit was $6.8million, a
decrease of 33.4% from $10.3 million
in the prior year period.
- Net loss attributable to common shareholders was $2.3million or $0.04 per basic and diluted share for the first
quarter of 2015, compared to net income of $4,000, or $0.00
per basic and diluted share, for the first quarter of 2014.
Mr. Weidong Yin, Chairman,
President and CEO of Sinovac, commented, "Our first
quarter results reflect changes in the China vaccine market environment,
particularly between the public and private markets and the
relative timing of purchases in these markets. We do not
believe that the decline in first quarter sales is indicative of
overall demand for our products but rather reflects timing
differences that will be resolved over the course of the year. We
were very pleased to announce the site inspection notification for
our EV71 vaccine this week. This marks a significant milestone in
the approval process. As we continue to make progress on our
vaccine pipeline, we are also focusing on international growth
opportunities. During the first quarter, we received our GMP
certificate from the Turkish government and GMP inspection from the
Kazakhstan government. These two
countries represent new market opportunities for Sinovac. We are
focused on strategically entering into international markets that
offer high sales potential for our current vaccine portfolio, as
well as for our pipeline vaccines as they are commercialized."
EV 71 Vaccine Developments
As previously announced, the China Food and Drug Administration
(CFDA) issued a site inspection notification for the commercial
production facilities of the Company's EV71 vaccine candidate. This
is a significant step forward for the Company in its efforts to
bring its EV71 vaccine to market. Sinovac will submit its
application to schedule the site inspection, which will include
production of three trial batches of the vaccine, and GMP
inspection. The Company expects this process to take four to six
months.
After the trial batch testing is completed, the CFDA will
consolidate the results of the
technical review, site inspection and trial batch testing and
summarize its final opinion. The CFDA will then issue the new drug
certificate, production license, and GMP license.
Unaudited Financial Results for First Quarter 2015
|
|
2015
Q1
|
% of
Sales
|
2014
Q1
|
% of
Sales
|
(In USD'000 except
percentage
data)
|
Hepatitis A –
Healive
|
|
2,922
|
31.5%
|
6,439
|
47.5%
|
Hepatitis A&B –
Bilive
|
|
5,055
|
54.5%
|
5,999
|
44.3%
|
Influenza
vaccine
|
|
586
|
6.3%
|
61
|
0.4%
|
Animal
vaccine
|
|
62
|
0.7%
|
25
|
0.2%
|
Mumps
vaccine
|
|
644
|
7.0%
|
920
|
6.8%
|
Regular
sales
|
|
9,269
|
100.0%
|
13,444
|
99.2%
|
H5N1
vaccine
|
|
-
|
0.0%
|
102
|
0.8%
|
Total
sales
|
|
9,269
|
100.0%
|
13,546
|
100.0%
|
Cost of goods
sold
|
|
2,434
|
26.3%
|
3,278
|
24.2%
|
Gross
profit
|
|
6,835
|
73.7%
|
10,268
|
75.8%
|
Quarterly sales were $9.3 million,
a decrease of 31.6% from $13.5
million in the prior year period.
Gross profit was $6.8 million, a
decrease of 33.4% from $10.3 million
in the prior year period. Gross profit margin was 73.7% compared
to75.8% in the prior year period. The decrease in gross profit
margin was primarily driven by idle capacity charges recorded for
the manufacturing facility. In the first quarter of 2014, the
Company produced more vaccine due to different production
scheduling and incurred no idle capacity charges as a result.
Selling, general and administrative expenses for the first
quarter of 2015 were $6.9million,
compared to $7.8 million in the same
period of 2014. The reduction was primarily due to reduced selling
expenses as a result of the decrease in sales, as well as lower
foreign exchange loss as compared to the first quarter of 2014.
R&D expenses for the first quarter of 2015 were $2.2million, a $0.5
million increase over the same period in 2014. This increase was attributable to
the continued advancement of Sinovac's pipeline products, including
sIPV, PPV and varicella vaccine.
Net loss attributable to common shareholders was $2.3 million or $(0.04) per basic and diluted share for the first
quarter of 2015, compared to net income of $4,000, or $0.00
per basic and diluted share, for the first quarter of 2014.
Balance Sheet Highlights
As of March 31, 2015, cash and
cash equivalents totaled $63.1
million, compared to $91.5
million as of December 31,
2014. Net cash used in operating activities was $8.2 million in the first quarter of 2015. Net
cash used in investing activities was $1.8
million, which was primarily used for payment for property,
plant and equipment for the Company's PPV and varicella vaccine
production facilities. Net cash used in financing activities was
$18.3 million in the first quarter of
2015, including $19.4 million for
repayment of loans, slightly offset by proceeds from a bank loan of
$0.8 million. As of March 31, 2015, the Company had $30.5 million of loans due within one year. When
appropriate, the Company will seek new commercial bank loans to
finance the commercialization of pipeline products, as well as for
other operational purposes.
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, while also exploring growth
opportunities in international markets. The Company has exported
select vaccines to Mexico,
Mongolia, Nepal, and the
Philippines, and was recently granted a license to
commercialize its hepatitis A vaccine in Chile. For more information, please visit the
Company's website at www.sinovac.com .
Contact
Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279-9659
Fax: +86-10-6296-6910
Email: ir@sinovac.com
ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com
Katherine Knight
Phone: +1 (646) 277-1276
Email: katherine.knight@icrinc.com
SINOVAC BIOTECH
LTD.
|
Consolidated
Balance sheets
|
As of March 31,
2015 and December 31, 2014
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
Current
assets
|
March 31,
2015
|
December 31,
2014
|
|
|
|
Cash and cash
equivalents
|
63,070
|
91,518
|
Accounts receivable –
net
|
42,356
|
40,757
|
Inventories
|
20,229
|
18,832
|
Prepaid expenses and
deposits
|
1,352
|
1,430
|
Deferred tax
assets
|
1,768
|
2,266
|
Total current
assets
|
128,775
|
154,803
|
|
|
|
Property, plant and
equipment
|
68,682
|
68,417
|
Prepaid land lease
payments
|
10,346
|
10,405
|
Long-term
inventories
|
2,738
|
2,648
|
Long-term prepaid
expenses
|
-
|
3
|
Prepayments for
acquisition of equipment
|
1,140
|
1,387
|
Deferred tax
assets
|
510
|
515
|
Licenses
|
264
|
352
|
Total
assets
|
212,455
|
238,530
|
|
|
|
Current
liabilities
|
|
|
Short-term bank loans
and current portion of long-
term debt
|
30,542
|
47,375
|
Loan from a
non-controlling shareholder
|
2,597
|
2,595
|
Accounts payable and
accrued liabilities
|
18,565
|
23,237
|
Income tax
payable
|
801
|
1,101
|
Deferred
revenue
|
5,026
|
4,996
|
Deferred government
grants
|
904
|
530
|
|
|
|
Total current
liabilities
|
58,435
|
79,834
|
|
|
|
Deferred government
grants
|
7,012
|
7,494
|
Long-term
debt
|
-
|
1,803
|
Deferred
revenue
|
7,198
|
7,191
|
Other non-current
liabilities
|
479
|
482
|
Total long term
liabilities
|
14,689
|
16,970
|
|
|
|
Total
liabilities
|
73,124
|
96,804
|
|
|
|
Commitments and
contingencies
|
|
|
Equity
|
|
|
Preferred
stock
|
-
|
-
|
Common
stock
|
56
|
56
|
Additional paid-in
capital
|
108,620
|
108,243
|
Accumulated other
comprehensive income
|
12,081
|
12,022
|
Statutory surplus
reserves
|
12,627
|
12,627
|
Accumulated
deficit
|
(8,635)
|
(6,384)
|
Total
shareholders' equity
|
124,749
|
126,564
|
|
|
|
Non-controlling
interests
|
14,582
|
15,162
|
Total
equity
|
139,331
|
141,726
|
Total liabilities
and equity
|
212,455
|
238,530
|
|
|
|
SINOVAC
BIOTECH LTD.
|
Consolidated
Statements of Comprehensive Income (loss)
|
For the three
months ended March 31, 2015 and 2014
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
|
Three months
ended March 31
|
|
|
2015
|
2014
|
Sales
|
|
9,269
|
13,546
|
Cost of
sales
|
|
2,434
|
3,278
|
Gross
profit
|
|
6,835
|
10,268
|
|
|
|
|
Selling,
general and administrative expenses
|
|
6,921
|
7,792
|
Provision
(recovery) for doubtful accounts
|
|
(89)
|
162
|
Research and
development expenses
|
|
2,212
|
1,702
|
Government
grants recognized in income
|
|
(6)
|
-
|
Total
operating expenses
|
|
9,038
|
9,656
|
Operating
income (loss)
|
|
(2,203)
|
612
|
|
|
|
|
Interest and
financing expenses
|
|
(588)
|
(750)
|
Interest
income
|
|
427
|
780
|
Other
income
|
|
75
|
146
|
Income
(loss) before income taxes and non-
controlling interests
|
|
(2,289)
|
788
|
Income tax
expense
|
|
(551)
|
(347)
|
|
|
|
|
Net Income
(loss)
|
|
(2,840)
|
441
|
Less: (Income)
loss attributable to the non-controlling interests
|
589
|
(437)
|
Net Income
(loss) attributable to shareholders of Sinovac
|
|
(2,251)
|
4
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
Foreign currency
translation adjustments
|
|
66
|
(2,084)
|
Total
comprehensive income (loss)
|
|
(2,774)
|
(1,643)
|
Less:
comprehensive (income) loss attributable to non-
controlling interests
|
|
582
|
(100)
|
Comprehensive loss attributable to
shareholders of Sinovac
|
|
(2,192)
|
(1,743)
|
|
|
|
|
Weighted
average number of shares of common stock
outstanding
|
|
|
|
Basic
|
|
56,213,166
|
55,587,029
|
Diluted
|
|
56,213,166
|
56,110,870
|
|
|
|
|
Earning
(loss) per share
|
|
|
|
Basic
|
|
-
0.04
|
0.00
|
Diluted
|
|
-
0.04
|
0.00
|
|
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Cash Flows
|
For the three
months ended March 31, 2015 and 2014
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars)
|
|
Three months
ended
|
|
March
31
|
|
|
2015
|
|
2014
|
Cash flows used in
operating activities
|
|
|
|
|
Net income
(loss)
|
$
|
(2,840)
|
$
|
441
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
Used in operating
activities:
|
|
|
|
|
- deferred
income taxes
|
|
534
|
|
311
|
- stock-based
compensation
|
|
113
|
|
72
|
- inventory
provision
|
|
45
|
|
221
|
-
provision(recovery) for doubtful accounts
|
|
(89)
|
|
162
|
- deferred
government grant recognized in income
|
|
(6)
|
|
-
|
- depreciation
of property, plant and equipment and amortization of
licenses
|
1,692
|
|
2,631
|
- amortization
of the prepaid land lease payments
|
|
69
|
|
67
|
- accretion
expenses
|
|
29
|
|
27
|
Changes
in:
|
|
|
|
|
- accounts
receivable
|
|
(1,843)
|
|
(4,981)
|
-
inventories
|
|
(1,542)
|
|
(2,879)
|
- income tax
payable
|
|
-
|
|
7
|
- prepaid
expenses and deposits
|
|
664
|
|
(582)
|
- deferred
revenue
|
|
-
|
|
(718)
|
- accounts
payable and accrued liabilities
|
|
(5,024)
|
|
(577)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(8,198)
|
|
(5,798)
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
- Proceeds from
bank loans
|
|
802
|
|
5,735
|
- Repayments of
bank loans
|
|
(19,403)
|
|
(2,458)
|
- Proceeds from
issuance of common stock,
|
|
|
|
|
net of
share issuance costs
|
|
264
|
|
105
|
- Proceeds from
shares subscribed
|
|
-
|
|
49
|
- Government
grants received
|
|
3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
(used in) by financing activities
|
|
(18,334)
|
|
3,431
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
- Acquisition
of property, plant and equipment
|
|
(1,781)
|
|
(2,204)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(1,781)
|
|
(2,204)
|
|
|
|
|
|
Exchange loss on
cash and cash equivalents
|
|
(135)
|
|
(1,019)
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(28,448)
|
|
(5,590)
|
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
|
91,518
|
|
107,242
|
|
|
|
|
|
Cash and cash
equivalents, end of year
|
$
|
63,070
|
$
|
101,652
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-first-quarter-2015-financial-results-300083993.html
SOURCE Sinovac Biotech Ltd.