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Sinovac Biotech. Ltd. (SVA) Begins H1N1 testing program in China, Enters into Agreement with Philippine Distributor

Some products provide solutions to global issues. These products are often more a need rather than a want. Being able to capitalize on this unfortunate reality is the key. Of course management needs to be cognizant of the moral questions that go along with these types of products, but the opportunity to make some revenue while benefitting the world population can be justified in the course of normal events. Currently there are two issues that might fit into this type of mold, global warming and the H1N1 flu pandemic.

Sinovac Biotech. Ltd., a biotechnology company, works to develop, manufacture and commercialize vaccines that cure or prevent human infectious diseases. The company is based in China but has current agreements to distribute through a Philippines based distributor in place.

Although China is the company’s primary market, it does have its sights set on expansion around the world. Its primary target at the moment is work on the H1N1 vaccine, which addresses the ongoing pandemic. As of August, the company will begin injection testing in China with a program of 21 days. If results look favorable, the company could have a large marketing potential as governments around the world are committed to trying to build a stock of reliable H1N1 flu vaccines before the Northern Hemisphere winter season.

In the more immediate picture is the company’s move into the Philippines. The particular agreement under consideration involves the World Health Organizations recommended Anflu product to treat or prevent spread of the Southern Hemisphere strain of H1N1 flu. The company has been successful with its Anflu product and is ramping to supply it to its new distributor base though that country. Sinovac Biotech, however, is not a one strain sort of operation. It also manufactures and markets products that deal with hepatitis A and B. In process are products for SARs and rabies along with a completed Phase II vaccine that addresses the H5N1 flu virus. The company appears to have several promising candidates moving through at optimum time periods. If it can manage its timing and testing programs properly, Sinovac Biotech may be in for a nice little ride.

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