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Sinovac Reports Unaudited Full Year 2008 and Fourth Quarter Financial Results
Date:4/9/2009

million decrease in the provision of the current income tax with a corresponding reduction in the income tax liability and a $1.1 million increase in deferred income tax expense with an offset to deferred income tax assets. The rate change was recorded in the period that changes occurred.

Three Months Ended December 31, 2008

For the fourth quarter 2008, sales were $12.4 million, compared to $9.2 million in the fourth quarter 2007. The year-over-year increase in sales reflected Sinovac's strategy to continue to devote significant resources to marketing Healive to the private pay market in China, as compared to the market created by government purchasing initiatives under the Expanded Immunization Program that may include the lower priced, live hepatitis A vaccine produced by state owned entities.

During the fourth quarter of 2008, Sinovac sold 1.62 million doses of Healive, compared to 1.14 million doses for the same period of 2007. Sinovac sold 1.05 million doses of Anflu during the fourth quarter of 2008, compared to 0.52 million doses for the same period of the prior year. During the fourth quarter of 2008, Sinovac sold 21,000 doses of Bilive, compared to nil doses in the prior year period. For the fourth quarter of 2008, Healive, Anflu, and Bilive as a percentage of sales represented 78.8%, 1.5% and 19.7%, respectively.

Gross profit for fourth quarter 2008 was $7.7 million, with a gross margin of 63%, compared to $6.3 million, and a gross margin of 68%, for the same period of 2007.

Total operating expenses for the fourth quarter of 2008 were $4.6 million, compared to $3.0 million in the same period 2007. Selling, general and administrative expenses for the fourth quarter of 2008 were $4.1 million, compared to $2.5 million in the same period of 2007. SG&A expenses as a percentage of sales represented 33% in the fourth quarter of 2008, compared to 27% in the sam
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SOURCE Sinovac Biotech Ltd.
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