China's Sinovac completes acquisition aimed at expanding production capacity

Sinovac Biotech, a leading China-based vaccine manufacturer, has 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 120 million renminbi ($17.6 million), which will be financed from working capital. The initial payment of 56.5 million renminbi will be paid before February 20, and the balance in three instalments within three years.

Sinovac Beijing is acquiring five existing buildings with a total built- out area of around 32,322 square meters on 29,021 square meters of land, located in Changping District, Beijing. 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.

Weidong Yin, chairman, president and chief executive of Sinovac, commented: "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."