Exhibit 99.1
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SINOVAC BIOTECH LTD. SIGNS AVIAN FLU VACCINE CO-DEVELOPMENT AGREEMENT
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WITH CHINA CENTRE OF DISEASE CONTROL AND PREVENTION (CHINA CDC)
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BEIJING, December 16, 2004 - Sinovac Biotech Ltd. ("Sinovac") ("the Company")
(AMEX: SVA) announces that it has signed an Avian Flu Vaccine Co-development
Agreement with China Centre of Disease Control and Prevention (China CDC).
China CDC is responsible for surveillance of influenza prevalence, molecular
epidemiology study of the virus strain, guidance and establishment of avian flu
vaccine development strategy, participation in avian flu vaccine research and
development, and the design of the technical roadmap. Sinovac is responsible for
avian flu vaccine research and development based on the established technical
platform and vaccine application and production. Furthermore, China CDC is
responsible for conducting several tests, including genome analysis on the virus
strains used in the vaccine R&D, antigen analysis, and immunization protection
analysis among others. Lastly, China CDC is also responsible for providing
guidance on the scope of use of the vaccine, storage of the vaccine, and the
evaluation of the protection of the vaccine.
The two parties intend to apply for government funding for this avian flu
vaccine co-development project.
Under the terms of the agreement, the new drug certificate, production license,
and patents will all be applied for by Sinovac and as a result the commercial
rights will be owned by Sinovac.
The World Health Organization influenza network began providing the prototype
bird flu virus early in 2004 to vaccine makers around the world. Sinovac
received the virus in April 2004.
About China CDC
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Chinese Center for Disease Control and Prevention (China CDC) is the nonprofit
government funded institution working in the fields of disease control and
prevention, public health management and provision of service. China CDC is
committed to retain the nation's stability, to protect the country's security,
and to enhance people's health through disease prevention. The xxxxx of China
CDC is to rely on science and study, to be based on intelligence, and to focus
on disease control.
Avian Flu
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World health authorities have recently warned that if the current avian flu
virus mutates into a form that spreads easily among people it could lead to the
next global flu pandemic, which could kill tens of millions of people worldwide.
Pandemics occur when a completely new flu strain emerges for which humans have
no immunity.
Influenza experts and world health authorities are concerned that the recent
appearance and widespread distribution of an avian influenza virus, H5N1, has
the potential to ignite the next flu pandemic. Given the current threat, world
health authorities are currently urging all countries to develop or update their
influenza pandemic preparedness plans for responding to the widespread
socioeconomic disruptions that would result from having large numbers of people
sick or dying.
Central to preparedness is an estimate of how deadly the next pandemic is likely
to be. Experts' answers to this question have ranged from 2 million to over 50
million. All these answers are scientifically grounded. There are several
reasons for the wide range of estimates.
Some estimates are based on extrapolations from past pandemics but significant
details of these events are disputed, including the true numbers of deaths that
resulted. The most precise predictions are based on the pandemic in 1968 but
even in this case estimates vary from one million to four million deaths.
Similarly, the reported number of deaths from the Spanish flu pandemic of 1918
by different investigators ranges from 20 million to well over 50 million.
Extrapolations are problematic because the world in 2004 is a different place
from 1918. The impact of greatly improved nutrition and health care needs to be
weighed against the contribution the increase in international travel would have
in terms of global spread. The specific characteristics of a future pandemic
virus cannot be predicted. It may affect between 20-50% of the total population.
It is also unknown how pathogenic a novel virus would be, and which age groups
will be affected.
The level of preparedness will also influence the final death toll. Even
moderate pandemics can inflict a considerable burden on the unprepared and
disadvantaged. Planning to maintain health care systems will be especially
crucial. Good health care will play a central role in reducing the impact, yet
the pandemic itself may disrupt the supply of essential medicines and health
care workers may fall ill. Because of these factors, confidently narrowing the
range of estimates cannot be done until the pandemic emerges. World health
authorities state that even in the best case scenarios of the next pandemic, 2
to 7 million people would die and tens of millions would require medical
attention. If the next pandemic virus is a very virulent strain, deaths could be
dramatically higher. The global spread of a pandemic cannot be stopped but
preparedness will reduce its impact.
In summary, world health authorities believe that the appearance of H5N1, which
is now widely entrenched in Asia, signals that the world has moved closer to the
next pandemic. While it is impossible to accurately forecast the magnitude of
the next pandemic, it is known that much of the world is currently unprepared
for a pandemic of any size.
Selection of Recent Media Articles about Avian Flu
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WHO warns of dire flu epidemic - CNN
xxxx://xxxxxxx.xxx.xxx/0000/XXXXXX/00/00/xxxxxxx.xxxxxxx/xxxxx.xxxx
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Tens of millions could die from flu - International Herald Tribune
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Avian flu could cost Asia $130 billion - CIDRAP News
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WHO Urges Preparation for Flu Outbreak - Associated Press
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sns-ap-health-headlines
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U.N. Health Official Foresees Tens of Millions Dying in a Global Flu - New York
Times
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2d3bf715830f2d3d&ei=5070&oref=login&ei=5070&en=98715eb05b94c57b&ex=
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1103086800&adxnnl=1&adxnnlx=1102968197-bYSpA1+w8iJ5G0OXxTLo/g
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WHO says bird flu could kill 100 million - Australian Broadcasting Corporation
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About Sinovac Biotech Ltd.
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Sinovac Biotech Ltd. specializes in the research, development,
commercialization, and sales of human vaccines for infectious illnesses such as
hepatitis A and hepatitis B, influenza, "SARS", and avian flu. Sinovac is one of
the leading emerging biotechnology companies in China.
Sinovac has three vaccines that have completed all three phases of clinical
trials - Hepatitis A, Hepatitis A&B combined, and influenza (flu). The Hepatitis
A vaccine, Healive(TM), is currently experiencing strong sales growth in China
and applications have been filed for its sale in nine other countries to date.
Sinovac's Hepatitis A&B combined vaccine, Bilive(TM), is expected to receive
approval to commence sales in China soon and to achieve similar sales growth to
Healive(TM). The flu vaccine completed clinical trials in April 2004 and a New
Drug Application has been filed with the SFDA (Chinese FDA). Approval of
Sinovac's flu vaccine is expected in 2005 upon completion of the flu vaccine
production line.
Sinovac is currently the only company in the world to be conducting clinical
trials for a vaccine to prevent SARS. The Company is co-developing a vaccine
targeting avian flu with China CDC.
For further information please refer to the Company's filings with the SEC on
XXXXX or refer to Sinovac's website at xxx.xxxxxxx.xxx.
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If you would like to receive regular updates on Sinovac please send your email
request to xxxx@xxxxxxx.xxx.
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Contact: Investor Relations at (000) 000-0000 or 0 000 000-0000 from outside of
North America or xxxx@xxxxxxx.xxx
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XXXXXXX 00X XX XXX XXXXXX XXXXXX SECURITIES ACT OF 1933, AS AMENDED, AND XXXXXXX
00X XX XXX XXXXXX XXXXXX SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED, WITH
RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING ADDITIONAL PROJECT
INTERESTS, SINOVAC'S ANALYSIS OF OPPORTUNITIES IN THE ACQUISITION AND
DEVELOPMENT OF VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE
STATEMENTS ARE MADE UNDER THE "SAFE HARBOR" PROVISIONS OF THE UNITED STATES
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UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.
