Financial Strength

No analyst follows SVA at this time.

Overview

China-based SVA focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases. The Company’s portfolio of products consists of vaccines against the hepatitis A, hepatitis B and influenza viruses.

The Company aims to be a leader in the supply of safe and effective vaccines that protect against human diseases. It boasts of vaccines developed with its own intellectual property rights. The Company markets and sells its vaccine products primarily through various provincial and municipal centers in China, and is currently on the process of developing international market to deliver its cost-efficient and high-quality products to other countries.

Chinese Vaccine Industry

The Chinese vaccine industries have seen higher profit margins, market expansion, and product line extensions during the past 20 years, according to a report by Dr. Liu Jianyuan, a researcher at the National Vaccine & Serum Institute. The report noted that the total vaccine markets have reached 3 billion RMB ($375 million), and the annual market demand for vaccines in China appears to be continuing its 15% annual increase. Separate reports link the boost in the vaccine industry with the emergence of SARS, avian flu, as well as the spread of hepatitis B across China. It was boosted anew with steady spread of the H1N1 virus through the country.

Addressing the Need for Protection against Infectious Diseases

Hepatitis B, a disease caused by HBV hepatitis B virus, is recognized as endemic in China, according to the World Health Organization (WHO). Globally, there are about 350 million chronic carriers of the hepatitis B virus, according to a report by Elsevier Science Ltd. Infection is acquired through exposure to infectious blood or body fluids containing blood. Medical literatures indicate that possible forms of transmission include, but are not limited to, unprotected sexual contact, blood transfusions, re-use of contaminated needles and syringes, and vertical transmission from mother to child during childbirth. Hepatitis B is 100 times more infectious than the AIDS virus, yet it can be prevented by vaccination.

Hepatitis A is an acute infectious disease of the liver caused by the hepatitis A virus (HAV). Although hepatitis A does not have a chronic stage, is not progressive, and does not cause permanent liver damage, the disease still causes considerable morbidity and mortality. Like hepatitis B, infection can be prevented by vaccination.

Influenza: SVA’s Anflu(TM) vaccine was developed in response to the fast growing influenza vaccine market in China. On July 22, the Company reported that it initiated dosing in its clinical trial of various Panflu vaccine candidates for pandemic influenza A (H1N1), with results to be reported in September 2009.

Products

BiliveTM

Bilive is a combined inactivated hepatitis A and B vaccine. It is available in different doses for use in both adults and children. BiliveTM junior is suitable for use in non-immune infants, children and adolescents from one year up to and including 15 years, who are at risk of Hepatitis A and Hepatitis B infection. BiliveTM adult is suitable for use in non-immune adults and adolescents 16 years of age and older, who are at risk of Hepatitis A and Hepatitis B infection. The vaccine can be recommended for persons who remain in the vicinity of HAV and/or HBV, users of illicit intravenous drugs, homosexuals and bisexuals, hemophiliacs who receive therapeutic blood products, persons with nephropathy who receive dialysis treatment, and those persons who receive long-term blood dialysis.

Healive®

Healive® is an inactivated hepatitis A vaccine developed without any preservative. It gained the state certificate as a new drug in 1999 and was launched in 2002. The vaccine provides the same efficiency and long-lasting immune effectiveness as Havrix, with more than 20 years of protection, if calculated according to the international Van Damme formula.

Anflu®

Anflu vaccine is an inactivated split influenza vaccine formulated from three split inactivated virus solutions, developed without preservatives. Over the past two years, the Company has expanded its manufacturing capacity for seasonal influenza vaccine to 5 million doses per year, and the same production line can produce 20 million doses of pandemic influenza vaccine, using a grant from China’s National Development and Reform Commission. The Company sold approximately 1.46 million doses of Anflu last year.

Aside from endemic and pandemic viruses of hepatitis and influenza, the Company is also developing human vaccines for Enterovirus 71 (EV71), Japanese encephalitis and rabies, as well as emerging viruses such as SARS and Avian Flu Influenza (bird flu). SVA is the first company in the world to have been granted permission to begin clinical trials for a vaccine to prevent Severe Acute Respiratory Syndrome (SARS), and the only company in China to develop a human use avian flu vaccine and successfully obtain the production approval from Chinese government.

Company Highlight and Recent News

On August 31, SVA announced its H1N1 vaccine has passed experts evaluation organized by SFDA, China’s competent authority of drug regulation, pushing the Company’s shares to hit a record high. According to the Company’s press release, the H1N1 vaccine’s results demonstrated to have a good safety profile and immunogenicity factors that reach the EU criterion after a single shot, with experts unanimously agreeing that the Company’s H1N1 vaccine is applicable to all people from three to 60 years of age; the vaccination schedule is a single shot. The Company looks forward to obtaining the production license within one week.

SVA shares were boosted last week, also helping the Swine and Bird Flu Stocks Index to increase 4.5% on news that the Company was chosen as one of the four manufacturers to supply Beijing with seasonal flu vaccine for 2009. According to the report, the Company will provide the city with its split viron vaccine, Anflu®, which is also hoped to provide H1N1 swine flu protection.

SVA has traded between $0.75 and $9.95 over the last 52 weeks. On August 31, SVA set a new 52-week high during trading session when it reached $9.95. Over this period, the share price is up 198.77%.

Currently, the MACD for SVA currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

The stock’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading at its upper Bollinger Band, the stock reflects high price relative to its recent price action.

With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock.

SVA has a positive Return on Assets of 13.84%, compared with an industry average of 2.03%; Return on Investment of 22.34%, compared with an industry average of 2.53%; and a Return on Equity of 17.47%, compared with an industry average of 4.36%.

Source: Reuters.com