Sinovac Biotech Ltd. ( SVA),
a leading China-based vaccine manufacturer, today announced the completion by
its subsidiary, Sinovac Beijing, of the acquisition of buildings and land use
rights. The total consideration for the purchase is approximately RMB120
million ($17.6 million), which will be financed from working capital. The
initial payment of RMB56.5 million ($8.3 million) will be paid before February
20, 2010 and the balance of the purchase price will be paid in three
installments within three years.
Sinovac Beijing is acquiring five existing buildings with a total built-
out area of 32,322.66 square meters on 29,021.61 square meters of land,
located in Changping District, Beijing, about half hour driving away from our
headquarter. The site was previously used to manufacture medicinal products.
Sinovac plans to set up two new production lines with a combined annual
production capacity of approximately 40 million doses, a filling and packaging
line, a warehouse and an animal house. At the site, the Company will
manufacture the enterovirus 71 (EV71) vaccine, which causes hand, foot, and
mouth disease (HFMD), and its other currently marketed flu vaccines.
Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "We
are pleased to complete the acquisition of this previously announced
transaction, which supports our growth strategy. The Changping site will
enable us to expand our production capacity, as the site will house two state-
of-the-art production lines and other necessary supporting functions. We
anticipate that it will take approximately two to three years for the lines to
be set up and production of our commercialized flu vaccines to commence. These
facilities will also support our growth objectives though the introduction of
novel products by housing the production lines for our EV71 vaccine, which is
currently being studied under the first clinical trial application for an HFMD
vaccine submitted in China. If approved, it will be the first vaccine or
antiviral treatment available for HFMD worldwide."
SOURCE Sinovac Biotech Ltd.