22 May 2020 - - China-based biopharmaceutical products provider Sinovac Biotech Ltd (NASDAQ: SVA) has closed a transaction in which Advantech Capital and Vivo Capital have invested USD 15m in Sinovac Research and Development Co., Ltd, a wholly owned subsidiary of Sinovac, to further the development of an inactivated vaccine against COVID-19 named CoronaVac, the company said.

The two investors each loaned USD 7.5m in the form of a convertible loan that bears interest, or, at the investor's election, converts into 7.5% of the total equity interest of Sinovac R and D.

Sinovac has made significant process in the development of CoronaVac. Preclinical results regarding CoronaVac were recently published in the peer-reviewed academic journal Science in an article noting that the vaccine candidate is safe and provides protection to rhesus macaques (monkeys) through an animal challenge study.

Sinovac received approval from governmental authorities to conduct both Phase I and Phase II human clinical trials in China.

The Phase I clinical trial, which evaluates the safety, tolerance, and preliminary immunogenicity of CoronaVac, commenced in April.

After preliminary observation of the safety profile of CoronaVac in the Phase I study, the Phase II clinical trial commenced in May.

The Phase II clinical trial evaluates the immunogenicity and safety of CoronaVac in a larger population in order to define dosage, regimen and immunization schedule. Sinovac is constructing a commercial vaccine production plant that is expected to manufacture up to 100m doses of CoronaVac annually.

Houlihan Lokey served as financial advisor, and Han Kun Law Offices and Latham and Watkins LLP served as legal advisors to the company in connection with the transaction.

Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases.

Sinovac's product portfolio includes vaccines against enterovirus71, hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), varicella and mumps. Healive, the hepatitis A vaccine manufactured by the company, has passed the assessment under WHO prequalification procedures in 2017.

The EV71 vaccine, an innovative vaccine developed by Sinovac against hand foot and mouth disease caused by EV71, was commercialized in China in 2016.

In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese government's vaccination campaign and stockpiling program.

The company is also the only supplier of the H5N1 pandemic influenza vaccine to the Chinese government's stockpiling program.

The company is developing a number of new products including a Sabin-strain inactivated polio vaccine, pneumococcal polysaccharides vaccine, a quadrivalent influenza vaccine, and a SARS-CoV-2 (commonly referred to as COVID-19) vaccine.

Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The company is registering its products in over 30 countries outside of China.