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Sinovac Reports Third Quarter 2008 Unaudited Financial Results
Date:11/18/2008

compared to $10.8 million in the third quarter 2007. The year-over-year change in sales reflected the Company's strategy of heavily promoting Healive in the private market in the first half of the year, as the Company expects the size of the public market for the hepatitis A vaccine to possibly increase significantly and the size of the private market may decrease in the second half of the year.

During the third quarter of 2008, Sinovac sold 1.1 million doses of Healive(R), compared to 1.53 million doses for the same period of 2007. Following the launch of Anflu(R) in early September, Sinovac sold 663,000 doses during the third quarter of 2008, compared to 1.07 million doses for the same period of the prior year. During the third quarter of 2008, Sinovac sold 28,000 doses of Bilive(R), compared to nil doses in the prior year period. As mentioned previously, the year-over-year change in sales was in line with the Company's sales and marketing strategy. For the third quarter for 2008, Healive, Anflu, and Bilive as a percentage of sales represented 78%, 19.5% and 2.5%, respectively.

Gross profit for third quarter 2008 was $7.1 million, with a gross margin of 81.0%, compared to $9.2 million and 84.7% for the same period of 2007. The change in gross margin as a percentage of sales was primarily attributable to the product sales mix during the third quarter of 2008.

Total operating expenses for the third quarter 2008 were $4.8 million, compared to $5.1 million in the same period 2007. Selling, general and administrative expenses for the third quarter of 2008 were $3.8 million, compared to $4.8 million in the same period of 2007. SG&A expenses as a percentage of sales represented 43.3% in the third quarter of 2008, compared to 44.0% in the same period in the prior year.

Gross expenditures on research and development expenses for the third quarter of 2008 were $812,000, compared to $22
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SOURCE Sinovac Biotech Ltd.
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