Latest news with #Sinovac
Associated Press
9 hours ago
- Business
- Associated Press
Prime Success Responds to Sinovac Biotech's False and Misleading Claims
HONG KONG--(BUSINESS WIRE)--Jun 14, 2025-- Prime Success L.P., (together with its affiliates, 'Prime Success' or 'we'), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ('Sinovac' or the 'Company') with ownership of approximately 8% of the Company's outstanding shares, today issued the following letter in response to the Company's recent false and misleading claims relating to the upcoming Special Meeting of Shareholders (the 'Special Meeting') scheduled for July 8, 2025. The full text of the letter is below and available at Dear fellow Sinovac shareholders, Prime Success, L.P. (together with its affiliates, 'Prime Success' or 'we'), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ('Sinovac' or the 'Company'), continues to be disappointed by the current Board's ('1Globe Activist Board') distortion of the facts about what is at stake at the upcoming Special Meeting of Shareholders (the 'Special Meeting') scheduled for July 8, 2025. In our June 10 letter we addressed several of the 1Globe Activist Board's misstatements and are taking the opportunity to remind all shareholders why the 1Globe Activist Board cannot be trusted: 1. Prime Success is insisting that a dividend be distributed – for all shareholders The 1Globe Activist Board's false comments are just not credible – why would any investor be against receiving a dividend? The 1Globe Activist Board wants you to believe that Prime Success is the reason that dividends have not been distributed, but we are not the Company and are not on the Board, and dividend distribution decisions are not ours to make. We can only continue to advocate on behalf of all shareholders that they should be made. Under the leadership of a SAIF Partners IV L.P. ('SAIF') nominated Board — composed of seasoned professionals with proven governance experience, deep operational insight, and a track record of building real, lasting value — we are confident that the pattern of internal conflict and ongoing litigation fueled by the 1Globe Activist Board can be broken, and shareholders can look forward to more future dividends. But that will not be possible with the 1Globe Activist Board in power as they have made clear they prioritize endless litigation over the Company's long-term success. 2. The 1Globe Activist Board is deliberately baiting shareholders by setting the dividend distribution date for one day after the Special Meeting. We call upon the Company to make dividend distributionbeforethe Special Meeting The 1Globe Activist Board deliberately set the dividend date for one day after the Special Meeting which creates the false impression that shareholders must vote for the incumbents to receive the dividends. But the upcoming Special Meeting will determine the Company's future direction and the long-term interests of all shareholders. We call on the 1Globe Activist Board to allow for a fair, pro rata distribution of dividends and to move the date of the dividend distribution to before the Special Meeting so the meeting can refocus on its proper purpose: electing a competent Board. 3. The 1Globe Activist Board distorts historic facts to aggrandize 1Globe and smear legitimate investors Let's compare facts against rhetoric of the 1Globe Activist Board. Over the past seven years, what have we contributed to the Company? The critical lifeline investments from Prime Success and Vivo Capital, LLC, combined with management's determined efforts, enabled Sinovac to seize a pivotal opportunity: the development of CoronaVac. This initiative ultimately resulted in the delivery of billions of doses to over 60 countries, generating substantial revenues while saving countless lives. Without the success of CoronaVac, there would not be any sizable dividend to distribute now. In contrast, what has 1Globe done for the Company? It has initiated multi-jurisdictional litigation against Sinovac, leading to a waste of company resources. The 1Globe Activist Board's mischaracterization of 1Globe and Prime Success' relative contribution to Sinovac and its shareholders reveals its deeply partisan nature. 4. Shareholders: looking forward, it's time to focus on what truly matters – the future of your investment in Sinovac Sinovac needs a Board that will roll up its sleeves and run the business, guiding the Company forward on a stable, productive path. The slate put forward by SAIF, consisting of representatives from all shareholders owning more than 5% of the Company's equity stake, many of whom possess deep industry experience, achieves exactly that. We urge all shareholders to focus on the future and choose the leadership that will best secure our Company's success in the years to come. We look forward to continuing to make our case for change to our fellow shareholders and encourage them to wait for and read SAIF's proxy materials before voting for the Special Meeting on July 8, 2025. Sincerely, Prime Success, L.P. About Prime Success, L.P. Prime Success is an investment vehicle established by Advantech Capital specifically to invest in Sinovac and Sinovac Life Sciences; Advantech Capital is a private equity fund established in 2016 with a focus on innovation-driven growth opportunities in China. View source version on CONTACT: Media Contact Longacre Square Partners Dan Zacchei / Miller Winston [email protected] KEYWORD: ASIA PACIFIC HONG KONG INDUSTRY KEYWORD: ASSET MANAGEMENT PROFESSIONAL SERVICES FINANCE SOURCE: Prime Success L.P. Copyright Business Wire 2025. PUB: 06/14/2025 12:00 AM/DISC: 06/13/2025 11:58 PM
Yahoo
10 hours ago
- Business
- Yahoo
Prime Success Responds to Sinovac Biotech's False and Misleading Claims
For More Information, Visit HONG KONG, June 14, 2025--(BUSINESS WIRE)--Prime Success L.P., (together with its affiliates, "Prime Success" or "we"), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ("Sinovac" or the "Company") with ownership of approximately 8% of the Company's outstanding shares, today issued the following letter in response to the Company's recent false and misleading claims relating to the upcoming Special Meeting of Shareholders (the "Special Meeting") scheduled for July 8, 2025. The full text of the letter is below and available at Dear fellow Sinovac shareholders, Prime Success, L.P. (together with its affiliates, "Prime Success" or "we"), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ("Sinovac" or the "Company"), continues to be disappointed by the current Board's ("1Globe Activist Board") distortion of the facts about what is at stake at the upcoming Special Meeting of Shareholders (the "Special Meeting") scheduled for July 8, 2025. In our June 10 letter we addressed several of the 1Globe Activist Board's misstatements and are taking the opportunity to remind all shareholders why the 1Globe Activist Board cannot be trusted: 1. Prime Success is insisting that a dividend be distributed – for all shareholders The 1Globe Activist Board's false comments are just not credible – why would any investor be against receiving a dividend? The 1Globe Activist Board wants you to believe that Prime Success is the reason that dividends have not been distributed, but we are not the Company and are not on the Board, and dividend distribution decisions are not ours to make. We can only continue to advocate on behalf of all shareholders that they should be made. Under the leadership of a SAIF Partners IV L.P. ("SAIF") nominated Board — composed of seasoned professionals with proven governance experience, deep operational insight, and a track record of building real, lasting value — we are confident that the pattern of internal conflict and ongoing litigation fueled by the 1Globe Activist Board can be broken, and shareholders can look forward to more future dividends. But that will not be possible with the 1Globe Activist Board in power as they have made clear they prioritize endless litigation over the Company's long-term success. 2. The 1Globe Activist Board is deliberately baiting shareholders by setting the dividend distribution date for one day after the Special Meeting. We call upon the Company to make dividend distribution before the Special Meeting The 1Globe Activist Board deliberately set the dividend date for one day after the Special Meeting which creates the false impression that shareholders must vote for the incumbents to receive the dividends. But the upcoming Special Meeting will determine the Company's future direction and the long-term interests of all shareholders. We call on the 1Globe Activist Board to allow for a fair, pro rata distribution of dividends and to move the date of the dividend distribution to before the Special Meeting so the meeting can refocus on its proper purpose: electing a competent Board. 3. The 1Globe Activist Board distorts historic facts to aggrandize 1Globe and smear legitimate investors Let's compare facts against rhetoric of the 1Globe Activist Board. Over the past seven years, what have we contributed to the Company? The critical lifeline investments from Prime Success and Vivo Capital, LLC, combined with management's determined efforts, enabled Sinovac to seize a pivotal opportunity: the development of CoronaVac. This initiative ultimately resulted in the delivery of billions of doses to over 60 countries, generating substantial revenues while saving countless lives. Without the success of CoronaVac, there would not be any sizable dividend to distribute now. In contrast, what has 1Globe done for the Company? It has initiated multi-jurisdictional litigation against Sinovac, leading to a waste of company resources. The 1Globe Activist Board's mischaracterization of 1Globe and Prime Success' relative contribution to Sinovac and its shareholders reveals its deeply partisan nature. 4. Shareholders: looking forward, it's time to focus on what truly matters – the future of your investment in Sinovac Sinovac needs a Board that will roll up its sleeves and run the business, guiding the Company forward on a stable, productive path. The slate put forward by SAIF, consisting of representatives from all shareholders owning more than 5% of the Company's equity stake, many of whom possess deep industry experience, achieves exactly that. We urge all shareholders to focus on the future and choose the leadership that will best secure our Company's success in the years to come. We look forward to continuing to make our case for change to our fellow shareholders and encourage them to wait for and read SAIF's proxy materials before voting for the Special Meeting on July 8, 2025. Sincerely,Prime Success, L.P. About Prime Success, L.P. Prime Success is an investment vehicle established by Advantech Capital specifically to invest in Sinovac and Sinovac Life Sciences; Advantech Capital is a private equity fund established in 2016 with a focus on innovation-driven growth opportunities in China. View source version on Contacts Media Contact Longacre Square PartnersDan Zacchei / Miller Winstonadvantech@
Business Wire
10 hours ago
- Business
- Business Wire
Prime Success Responds to Sinovac Biotech's False and Misleading Claims
HONG KONG--(BUSINESS WIRE)--Prime Success L.P., (together with its affiliates, 'Prime Success' or 'we'), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ('Sinovac' or the 'Company') with ownership of approximately 8% of the Company's outstanding shares, today issued the following letter in response to the Company's recent false and misleading claims relating to the upcoming Special Meeting of Shareholders (the 'Special Meeting') scheduled for July 8, 2025. The full text of the letter is below and available at Dear fellow Sinovac shareholders, Prime Success, L.P. (together with its affiliates, 'Prime Success' or 'we'), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA) ('Sinovac' or the 'Company'), continues to be disappointed by the current Board's ('1Globe Activist Board') distortion of the facts about what is at stake at the upcoming Special Meeting of Shareholders (the 'Special Meeting') scheduled for July 8, 2025. In our June 10 letter we addressed several of the 1Globe Activist Board's misstatements and are taking the opportunity to remind all shareholders why the 1Globe Activist Board cannot be trusted: 1. Prime Success is insisting that a dividend be distributed – for all shareholders The 1Globe Activist Board's false comments are just not credible – why would any investor be against receiving a dividend? The 1Globe Activist Board wants you to believe that Prime Success is the reason that dividends have not been distributed, but we are not the Company and are not on the Board, and dividend distribution decisions are not ours to make. We can only continue to advocate on behalf of all shareholders that they should be made. Under the leadership of a SAIF Partners IV L.P. ('SAIF') nominated Board — composed of seasoned professionals with proven governance experience, deep operational insight, and a track record of building real, lasting value — we are confident that the pattern of internal conflict and ongoing litigation fueled by the 1Globe Activist Board can be broken, and shareholders can look forward to more future dividends. But that will not be possible with the 1Globe Activist Board in power as they have made clear they prioritize endless litigation over the Company's long-term success. 2. The 1Globe Activist Board is deliberately baiting shareholders by setting the dividend distribution date for one day after the Special Meeting. We call upon the Company to make dividend distribution before the Special Meeting The 1Globe Activist Board deliberately set the dividend date for one day after the Special Meeting which creates the false impression that shareholders must vote for the incumbents to receive the dividends. But the upcoming Special Meeting will determine the Company's future direction and the long-term interests of all shareholders. We call on the 1Globe Activist Board to allow for a fair, pro rata distribution of dividends and to move the date of the dividend distribution to before the Special Meeting so the meeting can refocus on its proper purpose: electing a competent Board. 3. The 1Globe Activist Board distorts historic facts to aggrandize 1Globe and smear legitimate investors Let's compare facts against rhetoric of the 1Globe Activist Board. Over the past seven years, what have we contributed to the Company? The critical lifeline investments from Prime Success and Vivo Capital, LLC, combined with management's determined efforts, enabled Sinovac to seize a pivotal opportunity: the development of CoronaVac. This initiative ultimately resulted in the delivery of billions of doses to over 60 countries, generating substantial revenues while saving countless lives. Without the success of CoronaVac, there would not be any sizable dividend to distribute now. In contrast, what has 1Globe done for the Company? It has initiated multi-jurisdictional litigation against Sinovac, leading to a waste of company resources. The 1Globe Activist Board's mischaracterization of 1Globe and Prime Success' relative contribution to Sinovac and its shareholders reveals its deeply partisan nature. 4. Shareholders: looking forward, it's time to focus on what truly matters – the future of your investment in Sinovac Sinovac needs a Board that will roll up its sleeves and run the business, guiding the Company forward on a stable, productive path. The slate put forward by SAIF, consisting of representatives from all shareholders owning more than 5% of the Company's equity stake, many of whom possess deep industry experience, achieves exactly that. We urge all shareholders to focus on the future and choose the leadership that will best secure our Company's success in the years to come. We look forward to continuing to make our case for change to our fellow shareholders and encourage them to wait for and read SAIF's proxy materials before voting for the Special Meeting on July 8, 2025. Sincerely, Prime Success, L.P. About Prime Success, L.P. Prime Success is an investment vehicle established by Advantech Capital specifically to invest in Sinovac and Sinovac Life Sciences; Advantech Capital is a private equity fund established in 2016 with a focus on innovation-driven growth opportunities in China.
Associated Press
2 days ago
- Business
- Associated Press
SINOVAC's Board of Directors Issues a Letter to Shareholders Outlining Clear Pathway to Restore Fairness and Deliver Value to All Shareholders
BEIJING--(BUSINESS WIRE)--Jun 12, 2025-- Sinovac Biotech Ltd. (NASDAQ: SVA) (' SINOVAC ' or the ' Company '), a leading provider of biopharmaceutical products in China, today announced that it intends to file its definitive proxy materials in the coming days with the Securities and Exchange Commission (SEC) for the Special Meeting of Shareholders to be held on Wednesday, July 9, 2025 at 8:00 a.m. China Standard Time (Tuesday, July 8, 2025 at 8:00 p.m. Atlantic Standard Time). Valid shareholders of record as of the close of business on May 19, 2025 are entitled to vote at the meeting. SINOVAC's Board of Directors (the ' SINOVAC Board ') also issued a letter to shareholders. The full text of the letter follows: Dear SINOVAC Shareholder, We are at a critical juncture for SINOVAC and, as a valued shareholder in the Company, you face an important decision at the upcoming Special Meeting of Shareholders. A dissenting investor group led by Advantech/Prime Success ('Prime Success') and Vivo Capital (together known as the 'Dissenting Investor Group') has launched a hostile attempt to remove the SINOVAC Board. Prime Success and Vivo Capital are not legitimate shareholders of the Company. Their ownership is the result of an invalid private investment in public equity ('PIPE'), which is in the process of being unwound. The PIPE transaction was authorized by an illegitimate former board, which lost its seats at the February 2018 Annual General Meeting and failed to accept the outcome despite a clear shareholder vote. The UK Privy Council, in an unappealable ruling in January 2025, deemed this board to be an 'Imposter Board'. Yet, during the years when the Imposter Board refused to vacate office, they distributed nearly US$2 billion in dividends to themselves, while distributing nothing to the valid shareholders of SINOVAC (including 1Globe Capital and OrbiMed). Additionally, the Dissenting Investor Group and Imposter Board collaborated to buy out SINOVAC at just US$7.00 per share, below market price, which was rejected by 1Globe Capital, the largest minority shareholder. Since the Dissenting Investor Group knows they are not legitimate shareholders, they have requested the Special Shareholder Meeting through SAIF Partners to replace the SINOVAC Board with their own slate of nominees (the 'Dissident Slate'). We urge you not to be distracted by the Dissenting Investor Group's hostile actions and false claims, nor to believe their sudden support of the dividend we declared, their empty promises to distribute more cash to you in the future, or the false allegations against the SINOVAC Board in their recent letter dated June 10, 2025. As we detailed in our April 29 letter, the Dissenting Investor Group's self-serving actions blatantly interfere with the fair governance of our Company and pose a direct threat to the value of your investment and the future of SINOVAC. The Dissenting Investor Group's goal is clear: to protect the ill-gotten gains they stripped from SINOVAC subsidiaries over the past seven years and reinstate a complacent and complicit board that will allow them to continue such behavior and profit alongside. The past actions of the Imposter Board – specifically, the invalid poison pill adopted in 2018 – directly caused the NASDAQ trading halt and the subsequent resignation of the Company's former independent auditor. The Dissenting Investor Group and the Imposter Board have prioritized their own financial interests over those of all SINOVAC shareholders, while simultaneously undermining shareholder value and corporate governance and creating challenges that the SINOVAC Board is now working expeditiously to resolve. At the Special Meeting of Shareholders, you will have a chance to send a clear message to the Dissenting Investor Group: SINOVAC will no longer be held captive to their self-dealing. We are moving forward, not backward. The rightful SINOVAC Board – reconstituted in February 2025 and led by respected and recognized industry leaders following seven years of legal efforts begun in 2018 by 1Globe Capital, SINOVAC's single largest shareholder – is steadfast in its commitment to act in the best interests of ALL investors. Importantly, the SINOVAC Board is fully aligned with the interests of common shareholders. 1Globe Capital and OrbiMed will vote their collective stake in SINOVAC AGAINST the Dissenting Investor Group's misguided proposals. Dr. Chiang Li, Chairman of the SINOVAC Board, despite being nominated to the Dissident Slate, unequivocally stands with the SINOVAC Board and firmly opposes the Dissenting Investor Group's proposals at the Special Meeting of Shareholders. As the founder and Chairman of 1Globe Capital, Dr. Li's track record over the past eight years speaks volumes about his unwavering commitment to governance, fairness, and shareholder value – including defending against multiple attempts by the Dissenting Investor Group at undervalued privatizations (US$7.00/share) and other transactions dilutive to SINOVAC shareholders, as well as personally financing the litigation that resulted in the non-appealable Privy Council ruling. SINOVAC's Board is focused on making shareholders whole, following years of self-serving practices by the Imposter Board, by: In contrast, the Dissident Slate, which includes several members of the Imposter Board, will continue the Dissenting Investor Group's track record of self-serving actions by: Actions Speak Louder Than Words: The SINOVAC Board Has Already Announced a Special Cash Dividend to Shareholders and a Commitment to Further Dividends The SINOVAC Board has taken decisive steps to make shareholders whole by restoring fairness, integrity, and value to SINOVAC's rightful shareholders after years of unfair practices under the Dissenting Investor Group-controlled Imposter Board. These steps include: The SINOVAC Board is Committed to Creating Sustainable Value In addition to distributing significant dividends to all SINOVAC shareholders, the SINOVAC Board is focused on: A Destructive Future Awaits Under the Dissident Slate We urge you – do not trust recent comments by Prime Success and Vivo Capital regarding their sudden embrace of dividends. How convenient is it that after years in which they lined their own pockets while you received nothing, they now are in support of dividends for all? These misleading comments are clearly an effort to further swindle shareholders and loot SINOVAC. And don't just take our word for it – refer to the Company's 2023 20-F, issued under the Imposter Board in April 2024, right after they granted the Dissenting Investor Group over US$800 million in dividends from SINOVAC's operating subsidiary: 'We have never declared or paid any dividends, nor do we have any present plan to pay any cash dividends on Sinovac Antigua's shares in the foreseeable future. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business.' (emphasis added) Here's what you can expect if the Dissident Slate is elected at the upcoming Special Meeting of Shareholders: We cannot allow this pattern to continue. Your Vote Will Be Important This vote will be about the future of SINOVAC, your receipt of your make whole dividend payments in the near-term, and the long-term value of your investment. We look forward to sharing more details about the Dissenting Investor Group's misguided proposals in our proxy materials, which we intend to file in the coming days. Your vote will be critical to ensuring that SINOVAC remains on the path to stability, growth, and value creation for all shareholders. Moving Forward Together The SINOVAC Board is committed to restoring trust, fairness, and value for all shareholders. We are taking the necessary steps to correct the injustices of the past, investigate conflicts of interest, defend against the Dissenting Investor Group's hostile actions, and position SINOVAC for a brighter tomorrow. We thank you for your continued confidence and support as we work to protect your investment and the future of SINOVAC. Together, we can ensure that SINOVAC remains in the hands of leaders who are dedicated to acting in your best interests. Sincerely, The SINOVAC Board of Directors About SINOVAC Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the R&D, manufacturing, and commercialization of vaccines that protect against human infectious diseases. SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, etc. The COVID-19 vaccine, CoronaVac ®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive ®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive ®, is an innovative vaccine under 'Category 1 Preventative Biological Products' and commercialized in China in 2016. In 2022, SINOVAC's Sabin-strain inactivated polio vaccine (sIPV) and varicella vaccine were prequalified by the WHO. SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1 ®, which has supplied 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 Chinese government stockpiling program. SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations. Important Additional Information and Where to Find It In connection with SINOVAC's Special Meeting, SINOVAC will file with the U.S. Securities and Exchange Commission ('SEC') and mail to shareholders of record entitled to vote at the Special Meeting a proxy statement and other documents, including a WHITE proxy card. SHAREHOLDERS ARE ENCOURAGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS WHEN FILED WITH THE SEC AND WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. When filed with the SEC, the proxy statement and WHITE proxy card will also be mailed to shareholders of record. Investors and other interested parties will be able to obtain the documents free of charge at the SEC's website, or from SINOVAC at its website: You may also obtain copies of SINOVAC's proxy statement and other documents, free of charge, by contacting SINOVAC's Investor Relations Department at [email protected]. Other information regarding potential participants in any such proxy solicitation will be filed by SINOVAC. Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions, including the Company's statements related to the Compliance Plan, and timing and actions taken to regain compliance with Nasdaq listing rules. Such statements are based upon the Company's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, including without limitation risks, uncertainties and factors related to the timing of engaging independent auditors and completion of the audits of required fiscal periods, completion and filing of the 2024 Annual Report, the Compliance Plan, and actions taken to regain compliance with the Nasdaq listing rules, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. View source version on CONTACT: Investor and Media Contacts FGS Global [email protected] KEYWORD: CHINA ASIA PACIFIC INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL OTHER MANUFACTURING GENERAL HEALTH HEALTH COVID-19 INFECTIOUS DISEASES MANUFACTURING SOURCE: Sinovac Biotech Ltd. Copyright Business Wire 2025. PUB: 06/12/2025 07:04 PM/DISC: 06/12/2025 07:02 PM
Yahoo
3 days ago
- Business
- Yahoo
Vivo Capital Issues Letter to Sinovac Biotech Shareholders Addressing the Company's False and Misleading Claims
Affirms Support for Fair and Equitable Dividend Distribution for All Shareholders by Sinovac Corrects the Company's Misrepresentations of Vivo's Capital Contributions, Which Have Been Critical to Sinovac's Commercial Success and Ability to Return Capital to Shareholders Calls on All Shareholders to Stand up for Transparent Corporate Governance and Elect Qualified Directors to the Board at Upcoming Special Meeting on July 8 PALO ALTO, Calif., June 11, 2025--(BUSINESS WIRE)--Vivo Capital ("Vivo" or "we"), a leading global investment firm focused exclusively on healthcare and life sciences and an approximately 8% shareholder in Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company"), today sent a letter to shareholders. *** Dear Fellow Sinovac Shareholders, We, Vivo Capital ("Vivo"), write to you as fellow shareholders of Sinovac Biotech Ltd. ("Sinovac" or the "Company") to address a number of statements in the April 29, 2025 letter from Sinovac's Board of Directors (the "Board") that we believe are false, and to reaffirm our commitment to upholding the best interests of all shareholders and to transparent corporate governance. The Board has deceptively portrayed recent events as centering around a dispute with Vivo only. But the problem is at Sinovac's Board, not at Vivo. In fact, Sinovac's Board has precipitated a corporate governance crisis that threatens the Company's future growth and has eroded its credibility with all shareholders. After the Privy Council ruled in January that five (5) directors had been elected in February 2018 consistent with Antiguan law, a new Board was installed—but contrary to the claims of the Board, its composition did not match the slate the Privy Council had considered. With no transparency, multiple directors have purportedly resigned and been replaced within three months, casting substantial uncertainty over the Company's corporate governance and stability. Further, the Company's independent auditor, Grant Thornton Zhitong Certified Public Accountants LLP, resigned in response to the Board's April 1, 2025 statement that attempted to cast doubt on the validity of the Company's corporate actions over the past seven years.1 This resignation, in turn, prompted Sinovac's own management to publicly express concerns that the current Board's actions have disrupted Sinovac's compliant operations and governance.2 Further, dissatisfaction with the current Board does not just come from Vivo. Another major shareholder, SAIF Partners, formally requisitioned a special meeting of shareholders, which will be held on July 8, to elect new directors to the Board.3 In its April 29 letter, the Board continued its attempts to rewrite the Company's history. As shareholders, you will have an important decision regarding the future of your investment—so we want to ensure you have the accurate information regarding these matters: 1. Vivo supports the distribution of dividends. The Board's suggestion that Vivo aims to prevent shareholders from receiving dividends is false. As an investment firm, we fully expect the Company to distribute excess cash to all shareholders, including ourselves, as we are committed to fulfilling our fiduciary duties to our limited partners by seeking timely investment returns. However, the Board must ensure that any dividend payments are made lawfully and equitably, to the benefit of all shareholders, rather than by excluding long-time shareholders like Vivo for the personal benefit of individual Board members. 2. Vivo has never controlled the Company's Board. Since our PIPE investment in July 2018, Vivo has held approximately 8% of the Company's shares and has had only one representative on its six-seat Board. Contrary to the current Board's statement, Vivo has never sought nor possessed control of the Board or the Company. 1Globe and OrbiMed, on the other hand, who have now sued Vivo and another investor in Antigua, fully control the current Board with three purported seats held by directors of their choosing, two of whom were not on the slate proposed at the Annual General Meeting in February 2018 (the "AGM"), despite holding only a minority interest. 3. 1Globe's war against the Company directly led to NASDAQ trading halt. The Board has claimed that Vivo controlled the former Board and caused the NASDAQ trading halt. This is also false. The former Board was in place before Vivo's initial investment in the Company, which occurred six months after 1Globe ambushed the AGM. 1Globe subsequently launched a prolonged legal battle against the Company. As a result of the 1Globe litigation, the trading of Sinovac's stock was halted in February 2019. The recent resignation of the independent auditor has resulted in Sinovac's inability to timely file its annual report with the SEC,4 which in turn led to a notification of non-compliance from the NASDAQ.5 The Company is required to submit a plan to regain compliance by July 15, 2025 and may risk being delisted if the plan is not accepted by the NASDAQ. 4. Vivo made its PIPE investment in good faith, responding to the Company's financial needs. Vivo invested in Sinovac in July 2018, when the Company needed capital to launch two vaccine projects and to further develop its production facility in Beijing. At that time, the Company lacked surplus cash reserves and was unable to secure additional bank financing due to 1Globe's litigation against the Company. It was under these circumstances that we invested in the Company through the PIPE—an arm's length investment made in good faith. 5. Vivo's capital contributions were critical to successful development and commercialization of COVID-19 vaccine. At the beginning of 2020, Sinovac's Beijing operating entity Sinovac Life Sciences Co., Ltd. ("SLS") was in a dire situation, as the capital required for the development and production of CoronaVac far exceeded its available funds. Vivo aided in at least three ways: First, the cash injection from the PIPE investment enabled Sinovac to provide approximately $24 million in total to SLS for CoronaVac's development. Second, when 1Globe's protracted lawsuit led to the NASDAQ trading halt and prevented Sinovac from securing additional financing, Vivo and its co-investor each provided $7.5 million to SLS through a convertible bond structure in May 2020, ensuring the successful completion of CoronaVac's clinical trials. Vivo made this investment notwithstanding the significant uncertainties around CoronaVac's viability and profitability as it had not even completed its Phase I clinical trial at that time. Third, Vivo introduced additional investors to SLS, who subsequently provided $527 million of much-needed additional capital for ramping up CoronaVac's production at the end of 2020. SLS enjoyed a higher valuation in this round, because by then China had approved CoronaVac's emergency use, Phase III clinical trials were underway globally, a key production facility had begun operations, and the Company had received vaccine purchase orders from customers. Vivo's contributions were vital to the success of CoronaVac and have benefitted all shareholders. By contrast, 1Globe purchased all of its Sinovac shares from the open market without contributing a single dollar, or otherwise providing any support, to the Company. 6. There is no "double-dip" attempt by Vivo in receiving dividends. The Board misleadingly asserted that Vivo intends to "double‑dip" on dividends. As explained above, Vivo made two separate investments in the Company, including the PIPE investment in the holding company and the convertible bond investment in SLS, both of which were essential in supporting the success of the CoronaVac. These were arm's length transactions based on public trading price and/or independent third-party fairness opinions. Although SLS has issued dividends (including dividends to Sinovac, the public parent company, proportionate to its ownership), Vivo, like our fellow shareholders, has never received any dividend for its shareholding in the holding company. The Board's recent actions, including its threat to invalidate the PIPE transaction notwithstanding 1Globe's inability to obtain such relief in seven years of litigation in Antigua, left Vivo with no choice but to initiate legal proceedings. Vivo is litigating not just to protect its own interests, but the interests of all shareholders. We are gravely concerned about the Board's improper actions which have directly undermined the Company's governance and precipitated the current crisis, as evidenced by the resignation of the Company's independent auditor, the Company's delayed filing of its annual report with the SEC, and its receipt of notification of non-compliance from the NASDAQ. Our position is clear: all shareholders deserve to be treated fairly and equitably. Importantly, the Board's current actions risk harming all shareholders, as the Board's attempt to disenfranchise long-term shareholders like Vivo sets an alarming precedent of how it values and rewards key investors and how it views the legal and contractual obligations of the Company. Indeed, the Board is now attempting to illegally exclude Vivo and another long-term shareholder from the July 8 shareholders meeting. These actions would, among other things, make it harder for Sinovac to attract investors in the future, hurting the Company and all of its shareholders. We urge all of our fellow shareholders to join us in helping to restore trust in the Company's governance. We appreciate your continued support as we work to ensure the Company's future is built on integrity, transparency, and respect for all stakeholders. Sincerely, Vivo Capital LLC About Vivo Capital Founded in 1996, Vivo Capital is a leading global healthcare investment firm with a diverse, multi-fund investment platform spanning venture capital, growth equity, buyout, and public equities. The Firm has approximately $5.3 billion in regulatory assets under management and has invested in over 430 public and private companies globally. Headquartered in Palo Alto, California, the Vivo team consists of more than 75 multi-disciplinary professionals. Vivo invests broadly in healthcare across multiple sub-sectors, including biotechnology, pharmaceuticals, medical devices, and healthcare services, with a focus on the largest healthcare markets globally. 1 Sinovac's Form 6-K filed with the U.S. Securities and Exchange Commission (the "SEC") dated April 21, 2025, available at 2 Press Release, Sinovac Management Statement Regarding Auditor Resignation, available at: 3 SAIF Partners IV L.P.'s Schedule 13D filed with the SEC, available at: 4 Sinovac's Form 12b-25 (Notification of Late Filings) filed with the SEC dated April 29, 2025, available at 5 Sinovac's Form 6-K filed with the SEC dated May 23, 2025, available at View source version on Contacts MediaPro-vivo@ Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
