SINOVAC BIOTECH LTD. 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- 30,542 47,375
term debt
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- (2,289) 788
controlling interests
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- 582 (100)
controlling interests
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
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SOURCE Sinovac Biotech Ltd.
