Sinovac Beijing expands production capacity with acquisition of buildings and land use rights in Changping

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.

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment
Post
You might also like...
mRNA boost offers better protection against COVID-19 in people who received two Coronavac doses