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SINOVAC Updates the Status Under Holding Foreign Companies Accountable Act
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
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Rhea-AI Summary
Sinovac Biotech Ltd. (NASDAQ: SVA) has been identified by the SEC under the Holding Foreign Companies Accountable Act (HFCAA) since May 4, 2022, following its 2021 annual report. This identification stems from issues related to its auditor's jurisdiction, which the company had anticipated. Sinovac, based in China, specializes in developing and manufacturing vaccines for various infectious diseases, including COVID-19. The company aims to monitor HFCAA developments while expanding its market presence both domestically and internationally.
Positive
None.
Negative
The SEC identification under HFCAA could lead to increased scrutiny and potential trading restrictions.
The auditor's jurisdiction issues indicate potential risks related to financial reporting and transparency.
BEIJING--(BUSINESS WIRE)--
Sinovac Biotech Ltd. (“SINOVAC” or the “Company”) (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, is aware that the Company has been identified by the United States Securities and Exchange Commission (“SEC”) under the Holding Foreign Companies Accountable Act of the United States (the “HFCAA”) on May 4, 2022. Similar to other companies that have also been identified, SINOVAC notes such identification resulted from the Company’s filing of its annual report on Form 20-F for the fiscal year ended December 31, 2021. SINOVAC has previously disclosed that its auditor, the independent registered public accounting firm that issued the audit report included in its annual report filed with the SEC, is in a jurisdiction currently listed as not being able to be fully inspected by the PCAOB, and thus the identification was expected. SINOVAC will continue to closely monitor developments and explore options in relation to the HFCAA.
About SINOVAC
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 COVID-19, enterovirus71 (EV71), hepatitis A and B, seasonal influenza, 23-valent pneumococcal polysaccharide (“PPV”), H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), varicella, mumps and poliomyelitis. SINOVAC’s COVID-19 vaccine, CoronaVac®, has been granted emergency use approval or conditional marketing authorization in Asia, Latin America, Africa and Middle East countries and EUL by the WHO. 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 Panflu.1®, 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 Panflu® to the government stockpiling program. In 2021, SINOVAC’s Sabin-strain inactivated polio vaccine has been approved for registration. The Company is developing several new products including combination vaccines. SINOVAC primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company is actively seeking market authorization of its regular products in countries outside of China. For more information, please see the Company’s website at www.sinovac.com.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. In particular, the outcome of any litigation is uncertain, and the Company cannot predict the potential results of the litigation it filed or filed against it by others. Additionally, the triggering of a shareholder rights plan is nearly unprecedented, and the Company cannot predict the impact on the Company or its stock price as a result of the trigger of the rights plan.
What does the SEC identification mean for Sinovac Biotech Ltd. (SVA)?
The SEC identification under the HFCAA means that Sinovac may face heightened scrutiny and possible trading restrictions due to concerns about the auditor's jurisdiction.
Why was Sinovac Biotech Ltd. identified by the SEC?
Sinovac was identified by the SEC due to its auditor being in a jurisdiction that cannot be fully inspected by the PCAOB, following the filing of its annual report.
When was Sinovac Biotech Ltd. identified under the HFCAA?
Sinovac Biotech Ltd. was identified under the HFCAA on May 4, 2022.
How does Sinovac Biotech Ltd. plan to address HFCAA concerns?
Sinovac plans to closely monitor developments regarding the HFCAA and explore options to mitigate its impact.
