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BEIJING – (BUSINESS WIRE) – Sinovac Biotech Ltd. (“Sinovac” or the “Company”) (NASDAQ: SVA), a leading supplier of biopharmaceuticals in China, announced today that Sinovac Life Sciences Co., Ltd. (“Sinovac LS”) (formerly known as Sinovac Research and Development Co., Ltd.), a subsidiary of Sinovac, has secured approximately $ 500 million in funding for further development, capacity expansion and manufacturing of CoronaVac, its COVID-19 candidate vaccine, as well as other operational and development activities. The investor, Sino Biopharmaceutical Limited, a leading innovative R&D pharmaceutical conglomerate in China, through subsidiaries, has invested approximately US $ 500 million in exchange for approximately 15% of the total equity stake in Sinovac LS.
“We have made significant progress in the development of our COVID-19 vaccine candidate CoronaVac, which has reached critical milestones in clinical trials in Asia and Latin America, ”said Mr. Weidong Yin, President, President and CEO of Sinovac. “In addition to funding CoronaVac, this new strategic partnership with Sino Biopharmaceutical Limited enables us to enhance our vaccine sales capabilities, expand into Asian markets, develop and access new technologies and, most importantly, accelerate our efforts to help combat the pandemic. global. ”
Prior to the investment announced today, both Advantech Capital and Vivo Capital exercised their right to convert their convertible loan previously announced by the Company on May 22, 2020 into 7.5% of the total equity interests of Sinovac LS, which after the investment now represents a stake of approximately 6.3% in Sinovac LS.
Phase III clinical trials have been approved for CoronaVac in Brazil, Indonesia, Turkey, and Chile. In China, phase I / II trials were conducted with results showing that the candidate vaccine can induce neutralizing antibodies in more than 90% of volunteers who received two doses of vaccination in both adults and the elderly. Results from the Company’s phase I / II clinical trial in healthy adults ages 18-59 were published in the Lancet Infectious Diseases on November 17, 2020.
Sinovac expects to be able to manufacture 300 million doses per year and aims to complete the construction of a second production plant by the end of 2020 to increase CoronaVac’s annual production capacity to 600 million doses. Depending on market conditions and the availability of financing, the Company may in the future seek to further expand its production capacity.
Houlihan Lokey acted as financial advisor, and Han Kun Law Offices and Latham & Watkins LLP acted as legal counsels to the Company in connection with the transaction.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacture and marketing of vaccines that protect against human infectious diseases. Sinovac’s product portfolio includes vaccines against enterovirus71 (EV71), hepatitis A and B, seasonal influenza, pandemic influenza H5N1 (avian influenza), influenza H1N1 (swine influenza), varicella and mumps vaccine. Healive, the hepatitis A vaccine manufactured by the company, passed evaluation under WHO prequalification procedures in 2017. EV71, an innovative vaccine developed by Sinovac against foot-and-mouth disease caused by EV71, was marketed in China in 2016. In 2009, Sinovac was the first company in the world to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese government’s vaccination campaign and storage program. The Company is also the sole supplier of the H5N1 pandemic influenza vaccine for the government storage program. The Company is developing a number of new products, including a Sabin strain inactivated polio vaccine, pneumococcal polysaccharide vaccine. The COVID-19 vaccine, CoronaVac, developed by the company, is being tested in a phase III trial in several countries outside of China. Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company seeks market authorization for its products in more than 30 countries outside of China.
About Sinovac LS
Sinovac Life Sciences Co., Ltd., (or “Sinovac LS”), formerly known as Sinovac Research & Development Co., Ltd., is a research-based company incorporated in 2009 that conducts research, development, manufacturing and sales. It develops several human vaccines, including vaccines against pneumonia, DTaP, Hib and hepatitis B. Sinovac LS is also committed to developing several combination vaccines. Sinovac LS obtained 12 patents on vaccine technologies in China. The inactivated vaccine candidate COVID-19, or CoronaVac, developed by Sinovac LS is being tested in phase III trials in several countries outside of China. Sinovac LS will be the marketing authorization holder for CoronaVac in China with a vaccine production license issued by the China National Medical Products Administration (NMPA) if the vaccine is successfully developed.
About Sino Biopharmaceutical Limited (HKEX: 1177)
Sino Biopharmaceutical Limited is a leading and innovative R&D-driven pharmaceutical conglomerate in the People’s Republic of China. Its business encompasses a fully integrated chain covering a variety of R&D platforms, an intelligent production line, and a strong sales system. The Group’s products have gained a competitive position in several therapeutic categories with promising potentials, comprising a variety of biopharmaceutical and chemical drugs for the treatment of tumors, liver diseases, respiratory system diseases, anti-infective diseases and orthopedic diseases.
Sino Biopharm is a constituent stock of the following indices: MSCI Global Standard Indices – MSCI China Index, Hang Seng Index, Hang Seng Index – Commerce & Industry, Hang Seng Composite Index, Hang Seng Composite Industry Index – Consumer Goods, Hang Seng Composite LargeCap Index, Hang Seng Composite LargeCap & MidCap Index, Hang Seng China (listed in Hong Kong) 100 Index and Hang Seng Stock Connect Hong Kong Index. Sino Biopharm was ranked as one of Forbes Asia’s “50 Great Companies” by Forbes Asia for three consecutive years in 2016, 2017 and 2018.
Safe harbor declaration
This announcement may include certain statements that are not descriptions of historical events, but rather forward-looking statements. These statements are made under the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “will”, “expect”, “anticipate”, “future”, “Intends”, “plans”, “believes”, “estimates” and similar statements. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in such statements. In particular, the outcome of any litigation is uncertain and the Company cannot predict the potential outcomes of litigation filed or brought against it by others. Furthermore, the activation of a shareholder rights plan is unprecedented and the Company cannot predict the impact on the Company or its share price as a result of the activation of the rights plan.
This announcement contains forward-looking information about the Company’s efforts to develop a possible COVID-19 vaccine that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, but are not limited to, uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, start and / or end dates of clinical trials, dates of regulatory submission, regulatory approval dates, and / or release dates, as well as risks associated with clinical data (including phase III trial data); the ability to produce comparable clinical or other outcomes, including the efficacy rate of the vaccine and the safety and tolerability profile observed to date, in additional analyzes of Phase III trials or in larger and more diverse populations at the time of marketing; the risk that clinical trial data will be subject to different interpretations and evaluations, and by regulatory authorities; the risk that we may not be able to create or increase manufacturing capacity in a timely manner or have access to logistics or supply channels commensurate with global demand for any potential approved vaccine, which would adversely affect our ability to supply the estimated number of doses of our candidate vaccine; uncertainties about the ability to obtain recommendations from public health authorities; uncertainties about the impact of COVID-19 on our business, operations and financial results; and competitive developments.
