Sinovac Life Sciences (Sinovac LS), a subsidiary of Sinovac, has received up to $500m in funding for the development of its Covid-19 vaccine candidate.
Via its affiliates, the investor Sino Biopharmaceutical has invested around $500m in exchange for about 15% of the total equity interest of Sinovac LS.
Earlier to the announcement of investment, each of Advantech Capital and Vivo Capital exercised its right to switch its convertible loan previously announced by Sinovac into 7.5% of the total equity interests of Sinovac LS. The investment is said to represent up to 6.3% stake in Sinovac LS.
The funds will be used to further develop, manufacture and expand the capacity of CoronaVac, Sinovac’s Covid-19 vaccine candidate. Sinovac will also use the funding to conduct other development and operational activities.
Brazil, Indonesia, Turkey and Chile have approved the phase III clinical studies for CoronaVac vaccine candidate.
In September, Sinovac Biotech had begun phase III clinical trials for its inactivated Covid-19 vaccine candidate in Turkey.
In China, the company conducted the phase I/II trials, which demonstrated that CoronaVac has the potential to induce neutralising antibodies among more than 90% of volunteers who secured two doses of vaccination in both adults and the elderly.
With an aim of producing 300 million doses per annum, Sinovac intends to complete the construction of a second production facility by the end of this year. It will help increase the annual production capacity of CoronaVac to 600 million doses.
The company is also planning to further expand its production capacity in the future, based on market conditions and the availability of financing.
Sinovac president and CEO Weidong Yin said: “We have made significant progress in the development of our Covid-19 vaccine candidate CoronaVac, which has reached critical milestones in clinical trials in Asia and Latin America.
“In addition to funding the CoronaVac, this new strategic partnership with Sino Biopharmaceutical Limited further enables us to improve our vaccine sales capabilities, expand in Asia markets, develop and access new technologies, and most importantly, accelerate our efforts to help combat the global pandemic.”
Houlihan Lokey acted as a financial advisor, while Han Kun Law Offices and Latham & Watkins LLP served as legal advisors to Sinovac in connection with the deal.