Sinovac Reports 12.9% Revenue Growth in First Half of 2026 as Overseas Vaccine Business Expands
Sinovac Biotech Ltd., a leading biopharmaceutical company in China, has announced the filing of its unaudited financial results for the six months ended June 30, 2026, with the U.S. Securities and Exchange Commission (SEC). The company reported continued growth in sales during the first half of the year, supported primarily by strong expansion in international markets and increased demand for several of its vaccine products.
For the six-month period, Sinovac generated $147.1 million in sales, compared with $130.3 million during the same period of 2025, representing an increase of approximately 12.9%. The company said the growth was primarily driven by its overseas business, which continued to expand as international demand for vaccines increased.
Despite the improvement in revenue and gross profit, Sinovac reported a net loss attributable to common shareholders of $60.2 million, equivalent to a loss of $0.84 per basic and diluted share. This compared with a net loss attributable to common shareholders of $21.7 million, or $0.30 per basic and diluted share, in the first half of 2025.
The company said its financial results reflected continued investment in its business, changes in investment income and other financial factors, as well as the impact of expenses associated with its operations and strategic initiatives.
Overseas Business Becomes a Major Growth Driver
Sinovac’s international operations were the primary contributor to revenue growth during the first half of 2026. Overseas revenue increased 82.3% year over year to $66.5 million, accounting for approximately 45.2% of total company sales.
The significant increase highlights the company’s continued efforts to diversify its revenue base and strengthen its position in international vaccine markets. Sinovac has been pursuing a globalization strategy designed to expand the availability of its vaccines outside the Chinese Mainland and establish additional commercial opportunities in emerging and established international markets.
The company said the growth in overseas sales was driven particularly by increased demand for its varicella vaccine and poliomyelitis vaccine, Sabin strains (sIPV). These products benefited from increased orders from international organizations and contributed significantly to the company’s overall performance.
Sales of the varicella vaccine increased by 62.4% to $48.5 million during the first half of 2026. The product represented approximately 33.0% of Sinovac’s total sales during the period, making it one of the company’s most important revenue contributors.
Sales of sIPV increased by 35.3% compared with the first half of 2025. The company also generated additional revenue from its tetanus vaccine, which began commercial shipments in December 2025.
Expansion of International Product Authorizations
Sinovac also continued expanding the geographic reach of its vaccine portfolio during the period.
The company secured initial marketing authorizations for several products, including its varicella vaccine, hepatitis A vaccine and 23-valent pneumococcal polysaccharide vaccine, across 12 international markets.
These regulatory achievements broaden the company’s potential customer base and create opportunities for additional overseas sales as the products move toward wider commercialization.
The expansion of international approvals is part of Sinovac’s broader strategy to establish a more globally diversified business. The company believes continued international demand for vaccines, together with the introduction of new products, can provide additional long-term growth opportunities.
Domestic Market Faces Demographic Challenges
While international operations delivered strong growth, Sinovac’s business in the Chinese Mainland continued to face challenges related to declining birth rates.
Lower birth rates have affected demand for certain pediatric vaccines and created pressure in parts of the company’s domestic business. Sinovac said that the commercialization of innovative products is expected to become increasingly important for supporting future growth in the Chinese market.
The company is therefore focusing on advancing its research and development pipeline and bringing new products to market. New vaccine candidates could help diversify the company’s product portfolio and provide additional growth opportunities as market conditions evolve.
Pipeline Continues to Advance
Sinovac is also making progress across a number of late-stage vaccine candidates. The company currently has five late-stage product candidates in development.
These include:
- A bivalent enterovirus vaccine (HFMD2) for prevention of hand, foot and mouth disease;
- A quadrivalent enterovirus vaccine (HFMD4);
- A 13-valent pneumococcal conjugate vaccine (PCV13);
- A group ACYW135 meningococcal conjugate vaccine (MCV4); and
- A fully human anti-tetanus toxin monoclonal antibody (HmAb-TT).
The company expects to submit a New Drug Application (NDA) for PCV13 during the third quarter of 2026.
Sinovac also achieved several important regulatory milestones following the end of the reporting period, further advancing its development pipeline toward potential commercialization.
Rabies Vaccine Receives NMPA Approval
One of the key post-period developments was the marketing approval of Sinovac’s rabies vaccine (Vero cell) for human use, freeze-dried (PVRV-SF).
The vaccine received approval from China’s National Medical Products Administration (NMPA) on August 4, 2026. According to Sinovac, PVRV-SF was developed using a serum-free and animal-origin-free manufacturing process.
The company plans to pursue World Health Organization (WHO) prequalification for the vaccine. WHO prequalification could potentially support broader international access and allow the product to compete for procurement opportunities through international vaccination programs.
The vaccine has also been included in a supply agreement under the Productive Development Partnership (PDP) program with Brazil’s Ministry of Health, providing an additional opportunity for international deployment.
Sinovac considers the rabies vaccine an important addition to its commercial portfolio and expects the product to contribute to its global growth strategy.
Bivalent Enterovirus Vaccine Receives Priority Review
Another significant pipeline development involves the company’s bivalent enterovirus vaccine, HFMD2, which is being developed to prevent hand, foot and mouth disease.
The marketing authorization application was formally accepted for review by the Center for Drug Evaluation (CDE) of the NMPA on July 10, 2026. The application was also granted priority review designation.
The company believes HFMD2 has the potential to become the world’s first approved bivalent enterovirus vaccine targeting hand, foot and mouth disease.
If successfully approved, the vaccine could represent a significant addition to Sinovac’s pediatric vaccine portfolio while providing another potential growth opportunity in both domestic and international markets.
Gross Profit and Margin Improve
Sinovac’s financial performance during the first half of 2026 also showed improvement at the gross profit level.
Cost of sales increased to $51.5 million, compared with $48.8 million during the first half of 2025. The increase was primarily associated with higher sales volumes in overseas markets.
However, gross profit increased to $95.5 million, compared with $81.5 million in the previous-year period. Gross profit margin consequently improved from 62.5% to 65.0%.
Sinovac attributed the improvement primarily to a favorable shift in its product and channel mix toward higher-margin international sales. Continued efforts to improve production efficiency and reduce costs also contributed to the stronger gross margin.
The improvement suggests that the company’s international expansion is not only increasing revenue but is also contributing to a more favorable overall sales mix.
Operating Expenses Decline
Sinovac continued its efforts to control operating expenses during the first half of 2026.
Selling, general and administrative expenses declined to $130.9 million, compared with $147.2 million in the first half of 2025. The reduction was primarily attributed to cost-control initiatives and efficiency improvements, including lower personnel-related expenses.
Research and development expenses also declined significantly, falling to $83.2 million from $126.9 million in the prior-year period.
The decrease in R&D spending reflected differences in the development stages of individual projects between the two periods, as well as the company’s efforts to improve efficiency and manage expenses.
Despite the lower R&D expenditure, Sinovac continues to advance multiple late-stage vaccine programs, including candidates targeting HFMD, pneumococcal disease and meningococcal disease.
Changes in Other Income and Tax Expenses
Other income, net, totaled $21.1 million during the first half of 2026, compared with $161.9 million in the same period of 2025.
The significant year-over-year change was primarily related to lower investment income from financial institution-issued investment products. The company also experienced higher charitable donation expenses associated with vaccine donations and increased foreign exchange losses resulting from currency fluctuations.
Income tax expense increased substantially to $21.6 million, compared with $0.8 million in the first half of 2025.
The increase was primarily related to higher deferred income tax expense associated with expected withholding taxes on potential remittances of undistributed earnings to Sinovac Biotech (Hong Kong) Limited. Lower current income tax expense partially offset this increase, primarily due to reduced taxable investment income.
Net Loss and Shareholder Considerations
Sinovac reported a net loss of $91.4 million for the first half of 2026, compared with a net loss of $96.6 million during the prior-year period.
However, net loss attributable to common shareholders increased to $60.2 million from $21.7 million. The company attributed the increase primarily to a larger proportion of losses being incurred by subsidiaries without corresponding minority shareholders. These subsidiaries experienced higher losses due to increased general and administrative expenses and lower investment income.
The basic and diluted weighted average number of common shares outstanding was 71,860,702 in both periods.
The company also disclosed an ongoing legal matter involving 11.8 million common shares issued in 2018 under a Securities Purchase Agreement. The validity of these shares remains subject to dispute, with the question of whether they may be excluded from issued and outstanding shares depending on the outcome of legal proceedings in Antigua.
Excluding those shares, the weighted average number of shares would have been 60,060,702. On that basis, the company’s basic and diluted loss per share for the first half of 2026 would have been $1.00, compared with $0.36 during the prior-year period.
Cash Position Remains Substantial
As of June 30, 2026, Sinovac had $998.5 million in cash and cash equivalents and restricted cash, compared with approximately $1.2 billion at the end of 2025.
The decline was primarily associated with changes in investing activities and operating cash flows.
Net cash used in operating activities totaled $321.8 million, primarily reflecting payments associated with the company’s long-term employee incentive plan established in 2022 and year-end bonuses.
Net cash provided by investing activities was $315.1 million, largely reflecting proceeds from maturities and sales of wealth management products that exceeded new purchases.
Net cash used in financing activities totaled $152.2 million, primarily because of bank loan repayments.
During the first half of 2026, dividends totaling $24.5 million were declared and paid by Sinovac Biotech Co., Ltd. and Sinovac (Dalian) Vaccine Technology Co., Ltd. to their respective minority shareholders. Sinovac Biotech Ltd. also paid $0.7 million to its common shareholders under a dividend declared in 2025.
Focus on Global Expansion and Innovation
Commenting on the company’s performance, Weidong Yin, CEO of Sinovac, said the first half of 2026 demonstrated steady revenue growth driven primarily by the continued expansion of international operations.
He highlighted the 82.3% increase in overseas revenue and the fact that international business accounted for 45.2% of total sales, describing the performance as evidence of progress under Sinovac’s globalization strategy.
Looking ahead, Sinovac intends to continue investing in the international development and commercialization of its vaccine portfolio. The company also plans to pursue WHO prequalification for PVRV-SF and advance its late-stage development programs toward regulatory submissions.
The company said the progress of HFMD2, PCV13 and other pipeline candidates could help establish new sources of growth while addressing unmet vaccination needs in different markets.
Sinovac’s first-half 2026 results therefore highlight a business undergoing continued transformation. Strong overseas sales, improved gross margins, new international product approvals and regulatory progress in its late-stage pipeline are providing positive momentum, even as the company manages domestic demographic pressures, operating losses and changes in investment income.
The financial statements for the six months ended June 30, 2026 were prepared in accordance with U.S. GAAP and remain unaudited by the company’s independent registered accounting firm. Sinovac said it reviewed events occurring through the issuance date of the interim consolidated financial statements and, apart from the previously disclosed regulatory milestones, identified no subsequent events requiring recognition or additional disclosure.
About SINOVAC
Sinovac Biotech Ltd. (SINOVAC) is a global biopharmaceutical company headquartered in China. Guided by its mission to “Supply Vaccines to Eliminate Human Diseases”, the Company is dedicated to the research, development, manufacturing and supply of vaccines and related biological products, providing vaccine products and related solutions for disease prevention and control worldwide.
SINOVAC has a diversified vaccine portfolio across multiple disease areas, including influenza, viral hepatitis, varicella, hand, foot and mouth disease (HFMD), poliomyelitis, rabies, tetanus, and pneumococcal disease. Three of SINOVAC’s vaccines have been prequalified by the World Health Organization: the inactivated hepatitis A vaccine Healive®, the Sabin-strain inactivated poliomyelitis vaccine (sIPV), and the live attenuated varicella vaccine.
SINOVAC has extensive experience in vaccine research, development and commercialization for emerging infectious diseases and public health emergencies. The Company initiated vaccine R&D in response to major public health threats, including SARS, H5N1, H1N1, and COVID-19, and developed the world’s first inactivated SARS vaccine (with Phase I clinical trials completed), China’s first inactivated pandemic influenza vaccine against H5N1 (Panflu®), the world’s first H1N1 influenza vaccine (Panflu.1®), and CoronaVac®, the world’s most widely used inactivated COVID-19 vaccine.
Beyond its marketed portfolio, SINOVAC continues to advance its R&D pipeline, spanning combination vaccines, recombinant protein vaccines, mRNA technologies, antibody-based products, and other next-generation technologies and product platforms, while expanding its capabilities in disease prevention and biopharmaceuticals.
With a long-standing commitment to innovation and global health, SINOVAC continues to deepen collaboration with research institutions, international organizations, and local partners while expanding its global presence. Through technological collaboration, localized production, and industrial partnerships, the Company aims to improve access to high-quality vaccines across regions, better address local disease prevention and healthcare needs, and strengthen preparedness for future public health challenges.
For more information, please see the Company’s website at www.sinovac.com.