Sinovac Biotech, a China-based vaccine manufacturer, has announced that its subsidiary, Sinovac Beijing, has completed its acquisition of buildings and land use rights for an extension of its production capacity.
The total consideration for the purchase is approximately CNY120 million which will be financed from working capital. The initial payment of CNY56.5 million was paid in February 2010 and the balance of the purchase price will be paid in three installments within three years.
Sinovac Beijing has acquired five existing buildings with a total built-out area of 32,322.66 square meters on 29,021.61 square meters of land, located in Changping District, Beijing, which is a a thirty minute drive away from the company's headquarters. The site was previously used to manufacture medicinal products. Sinovac plans to set up two new production lines with a combined annual production capacity of approximately 40 million doses, a filling and packaging line, a warehouse and an animal house. At the site, the company will manufacture Enterovirus 71 vaccine, which immunizes against hand, foot, and mouth disease; as well as its existing flu vaccines.
Weidong Yin, the chairman, president, and CEO of Sinovac, commented that they anticipate that it will take approximately two to three years for the production lines to be set up and production of commercialized flu vaccines to commence.
The EV71 vaccine, is currently being studied under the first clinical trial application for an HFMD vaccine submitted in China. If approved, Yin says that it will be the first vaccine or antiviral treatment available for HFMD worldwide.