Sinovac reports wider Q1 losses on higher expenses, but increases sales
Vaccine maker Sinovac Biotech (NASDAQ:SVA) reported Friday wider first quarter net and operating losses, despite an increase in revenue from the year-ago period.
For the first three months of 2011, the China-based biopharmaceutical company disclosed a wider net loss attributable to stockholders of $2.8 million, or $0.05 per share, comparable to the year ago period's net loss of $0.3 million, or $0.01 per share.
Sinovac did, however, report an increase in sales, up 5.3% to $4.7 million from $4.4 million last year. The company said that sales would have increased by 50% had it not been for the H1N1 flu scare that caused a spike in the sale of its influenza vaccines in the year-ago period.
Gross margins slid down to 66.1% from 80.1% a year earlier, due to lower plant utilization as reduced demand caused the company to scale back production.
The addition of new sales personnel and the continued development of several vaccinations caused a 47.7% increase in the company's operating expenses to $6.5 million. This also contributed to a bigger operating loss of $3.4 million from $0.8 million in the first quarter of 2010.
"We are pleased to see the R&D projects moving forward smoothly. The Phase I trial for our proprietary EV71 vaccine (for hand, foot and mouth disease) is progressing well with the inoculations in the young children completed and infants to be completed in the coming weeks," said president and CEO, Dr. Weidong Yin.
Sinovac is also entering trial production for its mumps vaccination and expects its new animal rabies vaccine to launch next year.
The company focuses on the research, development, manufacture and commercialization of vaccines that protect against human infectious diseases, including hepatitis A, seasonal influenza, bird flu and H1N1 influenza.
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