Caixin
Mar 30, 2021 07:36 AM
BUSINESS & TECH

Covid Vaccine Maker CanSino Posts Wider Loss

What’s new: Chinese vaccine maker CanSino Biologics Inc. reported a 2020 net loss of 397 million yuan ($61 million), more than double the loss of the previous year, reflecting heavy investments in research and business expansion.

Total revenue for the year grew more than ninefold to 24.9 million yuan, the company said in its latest financial report.

CanSino’s gross profit margin was 42.4% in 2020, down 51 percentage points from 2019, reflecting rising costs, the company said. Investment in research and development rose 182% year-on-year, while marketing costs jumped more than twofold.

The background: CanSino is still seeking to commercialize its vaccine products that cover 13 major illnesses. The company said it might continue operating at a loss for a while due to heavy investment.

The company’s Covid-19 vaccine, a viral vector vaccine that requires only one shot, has already been granted approval in China and is authorized for emergency use in Hungary, Pakistan and Mexico. The company is in talks with a number of European countries about orders for its shots. The company is seeking emergency use listing with the World Health Organization, which would pave the way for the inoculation to be distributed through the Covax program providing vaccinations for poor and middle-income countries.

Despite the widening loss, Citic Securities said it is upbeat about CanSino’s business outlook, projecting that the company’s revenue growth from vaccine sales may exceed expectations after commercialization. The brokerage predicted that China’s vaccine market will grow at an annual rate of more than 10% over the next 10 years.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).

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