Shares of SVA surge

Sinovac shares soared over 50% this morning, as the Chinese State Food and Drug Administration (SFDA) approved its swine flu vaccine.

http://finance.yahoo.com/news/Chinese-biotech-Sinovac-gets-apf-212124857.html?x=0&.v=1

My investment thesis a few weeks ago was that they would receive an order for several million doses from the city of Beijing alone, with more to come from other provinces. Since then, they have received a commitment for 10 million doses from Mexico, as well as distribution rights for the Philippines.

The Chinese domestic population alone provides a huge market, and since Sinovac has already run human clinical trials demonstrating safety and efficacy for their flu vacccines, more orders should arrive from other countries, especially in neighboring Asia.

Disclosure: I am long SVA shares, and took a profit of over 100% on 25% of my original holdings.