BEIJING, April 5, 2016 /PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, announced today its unaudited fourth quarter and twelve month financial results for the period ended December 31, 2015.
Fourth Quarter 2015 Financial Highlights
(compared to the fourth quarter of 2014)
- Quarterly sales from continuing operations were $23.0million, an increase of 13.1% from $20.3 million in the prior year period.
- Gross profit from continuing operations was $15.7million, an increase of 2.3% from $15.3million in the prior year period. Gross margin was 68.3%, compared to 75.5% in the prior year period.
- Net income from continuing operations was $1.3million, compared to a net income of $2.4 million in the prior year period.Net loss from discontinued operations was $109 thousand, compared to net loss from discontinued operations of $217 thousand in the prior year period.
- Net income attributable to common shareholders was $504 thousand, or $0.01 per basic and diluted share, compared to net income attributable to common shareholders of $1.3 million, or $0.02 per basic and diluted share in the prior year period.
- Non-GAAP EBITDA decreased by 14% to $4.5 million in the fourth quarter of 2015, compared to $5.1 million in the prior year period. Non-GAAP net income from continuing operations in the fourth quarter of 2015 was $2.2million, a decrease of 15% compared to $2.6million in the prior year period.
Full Year 2015 Financial Highlights
(compared to the full year 2014)
- Total sales from continuing operations in 2015 were $67.4 million, an increase of 7.1% from $62.9 million in 2014.
- Gross profit from continuing operations in 2015 was $49.0 million, an increase of 3.2% from $47.5 million in2014. Gross margin was 72.7%, compared to 75.4% in 2014.
- Net income from continuing operations was $515 thousand, compared to a net income of $1.2 million in 2014. Net loss from discontinued operations was $728 thousand, compared to net loss of $1.5 million in 2014.
- Net loss attributable to common shareholders in 2015 was $1.1 million, or $0.02 net loss per basic and diluted share, compared to net loss of $851 thousand, or $0.02 net loss per basic and diluted share in 2014.
- Non-GAAP EBITDA increased by 7% to $11.2 million in 2015, compared to $10.4 million in 2014. Non-GAAP net income from continuing operations in 2015 was $2.4 million, an increase of 12% compared to $2.1 million in 2014.
Mr. Weidong Yin, Chairman, President and CEO of the Sinovac, commented, “We achieved continued sales growth in 2015, despite a more challenging market environment for vaccine sales. Our total sales increased to $67.4 million in 2015, primarily due to the recognition of H5N1 vaccine revenue, in addition to consistent recurring sales from our core products. We were pleased with the milestone achievements of our product pipeline this past year. Our next core product, the EV71 vaccine, obtained its new drug certification, production license and GMP certification, and is now in commercial production. We expect to begin the sales of EV71 by June 30, 2016. The EV71 vaccine is the first innovative vaccine product successfully developed and commercialized by Sinovac and represents the first of several pipeline product candidates being developed to grow the business in the coming years. We look forward to improving our financial performance and enhancing our market position over the long term upon the commercialization of this product.”
“We also began phase III clinical trials for the pneumococcal polysaccharides vaccine in April 2015, and acquired clinical trial licenses for the Sabin-IPV vaccine, varicella vaccine and pneumococcal conjugate vaccine. We will continue to execute our strategies to advance our pipeline products and fuel further growth.”
Fourth Quarter 2015 Business Highlights
Research and Development
EV71 -- The China Food and Drug Administration (CFDA) issued the new drug certificate and production license for Sinovac’s enterovirus 71 (“EV71") vaccine at the end of December, 2015. After the ten-day public notification, Sinovac was granted the Good Manufacturing Practices (“GMP”) certificate in January 2016, becoming one of only two manufacturers in China that had been approved to commercialize the product. The Company expects to launch the EV71 vaccine by June 30, 2016. Our EV71 vaccine was approved to be used by children aged from six months to three years old with each child receiving two doses.
Sabin Inactivated Polio Vaccine -- In December 2015, Sinovac obtained approval to begin human clinical trials on its sabin-inactivated polio vaccine (or “sIPV”) candidate. The Company plans to start the clinical trials in the first half of 2016. As previously announced,I n the WHO’s Expressions of Interest (EOI) initiative, Sinovac has entered into a license agreement with Intravacc (Institute for Translational Vaccinology), which is based in the Netherlands to develop and commercialize sIPV for distribution to China and other countries.
Varicella -- Sinovac Dalian obtained the approval to begin the clinical trials on its varicella vaccine candidate in October 2015. The clinical trials are expected to be launched in the first half of 2016.
Pneumococcal Conjugate Vaccine -- Pneumococcal Conjugate Vaccine obtained clinical trials approval in January 2015. Sinovac plans to start the trials within 2016.
Combination Vaccines Containing Measles -- In September 2015, Sinovac (Dalian) entered into a technology transfer and supply agreement with GSK, to use GSK’s measles seeds to develop a measles vaccine and combination vaccines containing measles for the China market. Under this agreement, GSK agreed to transfer its measles seeds, provide reasonable assistance and relevant technical materials to Sinovac Dalian for the purpose of developing and producing combination vaccines which would extend Sinovac’s product offerings. As our next key portfolio of live attenuated vaccine products, some of our combination vaccines containing measles target the Expanded Program of Immunization (EPI) market, which will drive up our sales in the public market over the long run.
Recent Developments
Disposal of Tangshan Yian In December 2015, Sinovac entered into an equity interest transfer agreement with Beijing Kuai Le Xing Biotech Co., Ltd. to transfer Sinovac’s 100% equity interest in Tangshan Yian Biological Engineering Co., Ltd. to Beijing Kuai Le Xing Biotech Co., Ltd. for a total consideration of RMB 13.0 million (approximately $2.0 million).
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