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Sinovac Reports Unaudited First Quarter 2011 Financial Results
Date:5/13/2011

he first quarter, which is a positive sign for 2011. We will continuously commit our resources to achieving sales growth."

Dr. Yin continued, "We are pleased to see the R&D projects moving forward smoothly. The Phase I trial for our proprietary EV71 vaccine is progressing well with the inoculations in the young children completed and infants to be completed in the coming weeks. We plan to complete the data and statistical analysis and report the trial results in the coming months.  Thereafter, we will commence the following phases of the EV71 clinical trial."

Dr. Yin concluded, "Following the Ministry of Agriculture's GMP site inspection of our animal rabies vaccine production facility, the outcome appears to be positive and is in the public notification process. We are on track to launch our animal rabies vaccine within the year. The capacity expansion construction at Changping facility is progressing on schedule. Sinovac Dalian submitted the clinical trial application for its rubella vaccine last month."

Financial Review for First Quarter Ended March 31, 2011Sales for the first quarter 2011 were $4.7 million, up 5.3% from $4.4 million for the first quarter of 2010. Excluding sales from the H1N1 vaccine, first quarter 2011 sales were up 50% as compared to the same period in 2010. In line with historical trends, first quarter sales are comparatively lower than other quarters given the typical seasonality of the Company's vaccine sales in China. Sinovac's first quarter

Sinovac's sales breakdown by product was as follows.Three months ended March 31,2011

2010Sales Inactive hepatitis vaccines$ 4,464,184

$ 3,080,693Influenza vaccines

216,408

1,363,206Total

$ 4,680,592

$ 4,443,899Gross profit for the first quarter of 2011 was $3.1 million, with a gross margin of 66.1%, compared to $3.6 million and a gross margin of 80.1% f
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SOURCE Sinovac Biotech Ltd.
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