Sinovac Biotech, Ltd. · NASDAQ:SVA
Sinovac Biotech — Investor Presentation (February 2007)
32 slides from Sinovac Biotech's investor presentation, February 2007
Slide 1: Sinovac Biotech Ltd. Corporate Presentation
Sinovac Biotech Ltd. Corporate Presentation February 2007
Slide 2: Disclaimer
Disclaimer The information contained in this document has not been independently verified by Sinovac Biotech Ltd. (the “Company”), or any of their respective affiliates, advisers or representatives. No representation or warranty, whether expressed or implied, is made as to, and no reliance should be
Slide 3: Investment Highlights
Investment Highlights Fully-Integrated Biopharmaceutical Company Focused on 1 Infectious Diseases Prevention 2 Three Vaccines Approved and Commercialized 3 Product Pipeline Serves as Growth Engine 4 Large Untapped Market Opportunity in China and Worldwide 5 Established Sales, Marketing and Distribut
Slide 4: Fully-Integrated Biopharmaceutical Company Focused on Infectious Diseases Prevention
Fully-Integrated Biopharmaceutical Company 1 Focused on Infectious Diseases Prevention Core strengths in researching, developing, manufacturing and commercializing a variety Fully- Integrated of vaccines that protect against infectious diseases Operating Structure Two state-of-the art production
Slide 5: Established Track Record
Established Track Record Completed clinical trials for Bilive Bilive Received Chinese Tang Shan Completed approved government grant Yian Sinovac clinical trials for Anflu for production Biological Biotech Co. Anflu approved expansion Engineering established Established Commence E
Slide 6: Three Vaccines Approved and Commercialized
2 Three Vaccines Approved and Commercialized Approved Vaccines Pre-Clinical Phase I Phase II Phase III Submit NDA In-Market Healive ™ (Hepatitis A) Anflu ™ (Split Influenza) Bilive ™ (Hepatitis A & B) 6
Slide 7: Healive (hepatitis A)
HealiveTM (hepatitis A) Product Description Market Opportunity First inactivated hepatitis A vaccine developed and China’s hepatitis A infection rate in some areas as high as 80% of the population; translates into approximately 2.4 million documented produced in China with private corporation ca
Slide 8: Anflu (split influenza)
AnfluTM (split influenza) Product Description Market Opportunity Egg based, split influenza vaccine developed by Sinovac Fastest growing segment within the vaccine industry, scientists estimated to be doubled in the next five year Obtained “New Drug Certification” from SFDA in Feb 2005 and rec
Slide 9: Bilive (hepatitis A & B)
BiliveTM (hepatitis A & B) Product Description Market Opportunity First, and currently the only combined inactivated HBV can cause chronic lifelong infection, cirrhosis hepatitis A and B vaccine developed and marketed in (scarring) of the liver, liver cancer, liver failure and China death Priv
Slide 10: Product Pipeline Serves as Growth Engine
3 Product Pipeline Serves as Growth Engine Vaccine Pipeline Pre-Clinical Phase I Phase II Phase III Submit NDA In-Market Panflu (Pandemic Influenza) Japanese Encephalitis SARS 10
Slide 11: Panflu (pandemic influenza)
PanfluTM (pandemic influenza) Candidate Description Recent Excerpts from The Lancet Targeting pandemic influenza virus (H5N1) “… In a previous trial published by The Lancet, scientists Co-developed by Sinovac and China CDC found that 30 micrograms of a vaccine containing part of Virus strain i
Slide 12: Product Candidates
Product Candidates Japanese Encephalitis Vaccine SARS Vaccine Mosquito-born virus that infects the central Independently developed by Chinese scientists, nervous system in human beings and animals Received authorization from the China SFDA in January 2004 to conduct the phase I clinical trial
Slide 13: Large Untapped Market Opportunity
4 Large Untapped Market Opportunity Global Market Market Drivers in China Huge population base Global vaccine market estimated at US$10 billion with an annual growth rate of 10% – 1.3 billion people – 15 million babies born every year China’s Projected Vaccine Demand & – Increasing percentage of
Slide 14: Established Sales, Marketing and Distribution Network
5 Established Sales, Marketing and Distribution Network Geographic coverage encompasses 25 provinces and municipalities Sinovac Heilongjiang Jilin 13 Representative offices Xinjiang Uygur Autonomous Region Beijing Liaoning 60 Sales Professionals Inner Mongolia Autonomous Region * Ningxia * Autonomou
Slide 15: Vaccine Distribution in China
Vaccine Distribution in China Decentralized Distribution System PRC government recently decentralized its distribution system for vaccine products to permit vaccine manufacturers to market and sell their vaccines to – certain local CDCs – certain inoculation centers and wholesalers – in addition t
Slide 16: Well Defined Business and Operating Strategy
6 Well Defined Business and Operating Strategy Acquire complementary technologies and Develop and market products that target vaccines that address large market unmet medical needs opportunities Seek regulatory approvals in target Continue to improve markets such as vaccine production, Mexico, Latin
Slide 17: Growth Objectives
Growth Objectives Leverage core competences in research, development, production and sales to become a global vaccine player Very Strong Global Biotech Company Leader in China’s Biotech Industry Fully Integrated Vaccine Developer with significant competitive advantages Strong Short-Term: Medium-Term
Slide 18: R&D and Manufacturing Facilities
R&D and Manufacturing Facilities Designed and maintained to conform with the WHO recommended bio-safety standards Headquarters — Beijing R&D Center — Tang Shan Yian 4,500 sqm facility located in Beijing PKU Biocity 4,000 sqm state-of-the-art laboratory experimental Hepatitis A vaccine producti
Slide 19: Skilled Labor Force
Skilled Labor Force As of December 31, 2006, Sinovac had 249 employees The Educational Level Employees of Employees by Function Master Degree and Above R&D Administration 7.6% 13.3% 14.9% Bachelor Degree and Above Sales & Marketing Diploma and Above 34.9% 26.1% 57.4% Production 45.8% 19
Slide 20: Collaborations
Collaborations LG Life Sciences China CDC Glovax In May 2005, LG Life Sciences In December 2004, signed co- In August 2005, authorized expressed interest in marketing development agreement with Glovax as exclusive distributor Healive worldwide the China CDC in Mexico for its vaccine In retur
Slide 21: Experienced and Committed Management Team
7 Experienced and Committed Management Team Over 60 years of experience in the vaccine industry Devoted 20 years to the hepatitis A virus research and one of the technological inventors of the Healive Dr. Weidong Yin In charge of the "Research on Inactivated SARS Vaccine“ and “Research on Pandem
Slide 22: Compelling Revenue Growth
8 Compelling Revenue Growth $18.0 $16.0 $15.4 $14.0 % 3 5. 4% $12.0 7 $10.7 . of 81 R of $10.0 G $8.6 R CA G CA $8.0 $6.4 3.3% 7 $5.9 of $6.0 AGR $4.7 C $4.0 $2.8 $2.7 $2.0 $0.0 2003 2004 2005 2006 1H05 1H06 2H05 2H06 Unaudited Unaudited Full Year Results 1H Results 2H Results 22
Slide 23: Compelling Gross Margins and Approaching Breakeven
Compelling Gross Margins and Gross Profit and Gross Margin Approaching Breakeven $7.0 90.0% $6.3 $0.0 79.9% 80.0% 1H04 1H05 1H06 $6.0 72.7% -$0.5 70.0% 70.0% $5.0 61.8% $4.5 -$1.0 60.0% (0.9) $3.7 US$ Millions $4.0 50.0% -$1.5 US$ Millions $3.0 40.0% -$2.0 $1.8 30.0% -$2.5 $2.0 20.0% -$3.0 (2.9) $1.
Slide 24: Annual Results
Annual Results Income Statement 2003 Growth 2004 Growth ($) Restated Rate Restated Rate 2005 Sales 2,838,933 127.0% 6,454,043 33.4% 8,607,948 Gross profit 1,753,052 4,516,060 6,261,744 Gross Margin 61.8% 70.0% 72.7% Total Operating Expenses 2,663,367 255.3% 9,462,303 19.4% 11,298,745 Operating loss
Slide 25: Semi-Annual Results
Semi-Annual Results Income Statement % % 1H 2004 1H 2005 Growth 1H 2006 Growth Sales 2,291,558 2,698,596 17.8% 4,676,765 73.3% Gross profit 1,529,599 1,970,481 28.8% 3,737,285 89.7% Gross Margin 66.8% 73.0% 79.9% Total Operating Expenses 4,409,046 5,545,826 25.8% 4,397,104 (20.7%) Operating loss (2,
Slide 26: Government Support
Government Support While not a state-owned agency, Sinovac receives significant support from the Chinese government Top official visits: – President Hu Jintao – Premier of China Wen Jiabao – State Counselor Chen Zhili Financial Grants: Date Project Amount 2003–2004 SARS $2.4 Million 2004–2006 Av
Slide 27: Well Positioned for Future Growth
Well Positioned for Future Growth Robust product portfolio allows for future growth – Healive First inactivated HAV vaccine developed, produced and marketed in China Recent positive regulatory change provides substantial growth potential – Bilive Only combined inactivated hepatitis A & B vac
Slide 28: Upcoming Milestones
Upcoming Milestones Continue to improve the financial performance and achieve operating breakeven SFDA approval to commence Phase II trial for pandemic influenza vaccine Application filed in Nov. 2006 and currently under review by SFDA Maximize collaborations – Apply for regulatory approval
Slide 29: Investment Highlights
Investment Highlights Fully-Integrated Biopharmaceutical Company Focused on 1 Infectious Diseases Prevention 2 Three Vaccines Approved and Commercialized 3 Product Pipeline Serves as Growth Engine 4 Large Untapped Market Opportunity in China and Worldwide 5 Established Sales, Marketing and Distribut
Slide 30: Appendix
Appendix > ta —
Slide 31: Competitor Analysis
Competitor Analysis Competition in China International Products Domestic Competitors Competitors Zhejiang PuKang, Changchun Live Changsheng, Changchun Institute, N/A Attenuated Kunming Institute Healive GSK, MERCK, Inactivated Kunming Institute Berna Bilive N/A GSK 31
Slide 32: Competitor Analysis: International vs Domestic
Competitor Analysis Pros Cons With different kinds of products and Complicate policy-making process long production history Simple company ownership Experienced technical experts Domestic Weaker ability of capital raising Long-term relationship with Weaker marketing capability governme
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