Sinovac Biotech to transfer quote to NASDAQ from Amex

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By Ding Qingfen (China Daily)
Updated: 2009-11-05 08:44

Sinovac Biotech Ltd, China's first officially approved H1N1 flu vaccine maker, announced yesterday it would transfer its stock exchange listing to the NASDAQ Global Market from NYSE Amex in a bid to raise more funds and become a leading vaccine producer.

The spread of H1N1 flu in China has benefited Sinovac, which is China's second largest H1N1 flu vaccine producer in volume terms. Its shares are expected to start trading on the NASDAQ by mid-November.

The funds raised will be injected into expanding vaccine production capacity, strengthening research capability and conducting mergers and acquisitions, said corporate executives.

"Sinovac expects to be a leading international vaccine producer through quality and reasonably-priced products to Chinese and others in need," said Yin Weidong, chairman of Sinovac Biotech Ltd.

Sinovac has an annual H1N1 vaccine output to meet the needs of 30 million people, and it will expand the capacity for both flu and other diseases, Yin said.

Besides, Sinovac will also increase research and development spending from the current 5 to 10 percent, he said.

The company has started developing a vaccine for hand, foot and mouth disease, the first to do so in China, and is expected to apply for clinical trials next year.

Sinovac Biotech got listed on the NYSE Amex late in 2004, and had planned for the transfer for long, but could not meet the market requirements by NASDAQ due to its low share price, said Helen G Yang, manager of the international business department at Sinovac Biotech.

When its shares started surging since early this year after the outbreak of the H1N1 influenza, the company began to communicate with the NASDAQ bourse in August, she said.

Since it started developing the H1N1 vaccine in early June, Sinovac's share price has more than tripled during the past five months, from around $2. On Tuesday, its stock closed at $7.91.

Compared with their share prices three months ago, the Hualan Biological Engineering and Tiantan Biological shares had risen by 200 and 150 percent, respectively, at the end of October.

During the roadshow in late September, Sinovac was warmly welcomed by the NASDAQ market. "I felt so surprised to see the strong recognition of a Chinese vaccine producer," said Yin.

"The H1N1 flu and Sinovac's good performance during the outbreak have increased the speed of its transfer to the NASDAQ."

Sinovac Biotech, established in 2001, was the first company in the world to announce preliminary clinical trials of the vaccine and the first to get approval for production from the Chinese government in late August.

The company has won three orders for 11.49 million people, the second largest supplier after Hualan Biological among the eight Chinese H1N1 flu vaccine producers.

As on Nov 1, the Chinese mainland had reported 47,500 H1N1 cases in 31 provinces and regions. It is estimated that 390 million Chinese need to get vaccinated, but the nation had only ordered vaccines for 70 million people until October.

Sinovac said it expected to get more orders, and was speeding up production, but "the benefits from the H1N1 flu vaccine are short-term. What we are targeting is to become a leading vaccine producer worldwide by leveraging our growing brand awareness," Yin said.

China is now the third largest vaccine market with a size of $1 billion annually.

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