Sciclone Pharmaceuticals (SCLN) research, news, and more from GeoInvesting

Company description

Wed, 14 Mar 2012 04:00:00 GMT

SciClone Pharmaceuticals is a revenue-generating, profitable, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio of therapies for oncology, infectious diseases and cardiovascular, urological, respiratory, and central nervous system disorders. SciClone's ZADAXIN® (thymalfasin) is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV), as a vaccine adjuvant, and certain cancers according to the local regulatory approvals. Besides ZADAXIN, SciClone markets about 15 mostly partnered products in China, including Depakine®, the most widely prescribed broad-spectrum anti-convulsant in China; Tritace®, an ACE inhibitor for the treatment of hypertension; Stilnox®, a fast-acting hypnotic for the short-term treatment of insomnia (marketed as Ambien® in the US); and Aggrastat®, a recently-launched interventional cardiology product. SciClone is also pursuing the registration of several other therapeutic products in China.

Hot Bio-Tech News

Fri, 17 May 2013 04:00:00 GMT

FOSTER CITY, CA--(Marketwired - May 16, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that the Company has entered into an agreement with Zensun (Shanghai) Science & Technology Co., Ltd. granting SciClone a license and the exclusive rights in China, Hong Kong and Macau to promote, market, distribute and sell Neucardin�, a novel, first-in-class therapeutic drug for the treatment of patients with intermediate to advanced chronic heart failure (CHF).

Neucardin is a genetically engineered recombinant peptide fragment of neuregulin-1 that has been clinically shown to directly improve cardiac function, reverse ventricular remodeling and increase the survival of heart failure patients. Six Phase 2 studies with Neucardin have been conducted in China, Australia and the United States, including three Phase 2b studies in China. The China Phase 2b survival study demonstrated that Neucardin was well tolerated and showed a significant decrease in mortality and improved survival in patients with CHF. A New Drug Application (NDA) was submitted to and accepted by the China Food and Drug Administration (CFDA) in 2012.

Commented Friedhelm Blobel, Ph.D., SciClone's Chief Executive Officer: "In-licensing Neucardin fulfills one of our Company's key strategic initiatives to expand our product portfolio with differentiated, high quality products that have significant therapeutic advantages and near-term commercial potential, and that can contribute to our long-term growth. Neucardin addresses a large unmet need in the treatment of CHF, and targets an indication in China with a significant underlying patient base. Neucardin is an excellent fit for our Company, enabling us to leverage the deep experience and expertise of our cardiovascular sales and marketing team and expand our penetration into this growing market segment."

Mingdong Zhou, Ph.D., Zensun's Chief Executive Officer, stated: "We are pleased to establish this agreement with SciClone, a company with a stellar reputation and proven expertise in successfully selling and promoting high-quality products in the China market. We believe that Neucardin, a first-in-class biologic that works through a novel mechanism of action, has the potential to bring significant benefits to patients with CHF. We are also proud of the innovative approach that Neucardin represents, which has enabled us to be recognized in China's 11th and 12th five-year plans. We look forward to working with SciClone as we move this promising new drug through the final stages of the China regulatory process."

Under the terms of the agreement, Zensun will be responsible for the manufacturing and supply of Neucardin, and SciClone will be responsible for all aspects of commercialization, including the pre- and post-launch activities for Neucardin. Financial terms of the agreement include aggregate potential milestone payments of up to $18.5 million. The Company has agreed to make additional payments of $10 million should Zensun receive approval of Neucardin by subcutaneous infusion. Further indications and improved product forms of Neucardin could result in additional payments. Also included in the agreement is a $12 million collateralized loan facility by which SciClone would provide a secured loan to Zensun that Zensun may use in future. The agreement provides for the principal terms of the arrangement between SciClone and Zensun, and the companies have agreed to negotiate a supplemental license and supply agreement.

Cardiovascular therapeutics are a large and fast-growing market in China. Chronic heart failure has a large underlying patient base in China of approximately five million urban patients. It is expected that the prevalence of CHF in China will increase to over seven million urban patients over the next ten years, primarily due to the growing aging population in China and urbanization.

Heart failure, or chronic heart failure, develops as a result of the slow deterioration of cardiac muscle where the heart undergoes an irreversible process of maladaptive remodeling. In an attempt to compensate for impaired cardiac function, diseased hearts "remodel," a process that can change the heart's shape and thickness, thereby resulting in severe cardiac dysfunction. Drugs currently treating CHF tend to be mature products that can relieve symptoms, but none can actually reverse the maladaptive remodeling. One of Neucardin's potential advantages is that it is not designed to directly compete with existing therapies, given its unique mechanism of action, but rather it can be included as part of the comprehensive treatment of CHF involving multiple drugs.

Neucardin has strong patent protection on a worldwide basis, with 12 issued patents and more than 30 applications pending. With its expanding global clinical data package and worldwide patent protection, Zensun is also actively preparing to conduct Phase 3 trials in the US in order to commercialize Neucardin beyond the China market.

Comments & Business Outlook

Fri, 17 May 2013 04:00:00 GMT

FOSTER CITY, CA--(Marketwired - May 16, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported its expectations regarding financial results for the quarter ended March 31, 2013.

Friedhelm Blobel, Ph.D., SciClone Chief Executive Officer, commented: "The accounting treatment for portions of our NovaMed promotion services revenue that may impact the timing of revenue recognition between quarters is under review. We are working with both our prior and current independent registered public accounting firms on the matter. To obtain a resolution on this matter we believe we will need to consult with the SEC and we are unable to predict the timing of when our 10-Q will be filed. Today, we are reporting preliminary results assuming an accounting basis consistent with the Company's financial statements for the 2012 year-end, as well as our expectation of variances in the results for this quarter. The most significant issue we are reviewing is whether a portion (approximately 25%) of our promotion services revenue under our Sanofi agreement should be recognized during each of the first three quarters, or deferred until the fourth quarter of the same year. Until this issue is resolved, we will not be able to finalize our results and file our Form 10-Q for the quarter."

Except as noted, all information in this report assumes an accounting basis consistent with the Company's financial statements for the 2012 year-end. Overall revenues are expected to be $29.8 million, compared to $41.1 million for the same period of the prior year, including a $10.7 million or 36% decrease in sales of ZADAXIN�. The Company previously communicated that ZADAXIN revenues would be lower in the first half of the year as it reduces its channel inventory levels. As discussed previously, in 2012 during the third quarter and particularly in September 2012, the Company estimates that there was an increase of approximately $14 million in ZADAXIN channel inventory levels, and the Company believes that sales to its customers, importers and distributors exceeded the pace at which they were able to sell ZADAXIN through to hospital pharmacies and other parties, resulting in lower commercial sales by the Company to its importer in the first quarter of 2013. ZADAXIN channel inventory levels decreased by approximately $5 million in the fourth quarter of 2012, and decreased by approximately $5 million in the first quarter of 2013 due to strong demand for ZADAXIN in the market and a decreased supply to importers. The Company expects these levels to continue to improve in the second quarter of 2013 to more typical levels for imported drugs in China. In addition, the Company has made significant organizational and management enhancements, including the hiring of an experienced Chief Executive Officer for China Operations, designed to improve its sales and marketing performance.

"In the first quarter of this year, we continued to execute on our sales and marketing strategies according to our 2013 business plan and delivered results that are in line with our expectations for the quarter and our ability to achieve our full-year financial guidance by year-end," said Dr. Blobel. "We continued to make good progress in reducing the ZADAXIN� channel inventory build-up, demand for ZADAXIN continues to be strong and we continue to anticipate positive momentum in the second half of this year. Importantly, hospitals sales in the quarter were, based on the information available to us, higher than the prior period a year ago. Our focus remains on reestablishing our Company's growth trajectory, including expanding sales of ZADAXIN in new markets and in new indications, as well as on establishing profitability in our product promotion business."

Continued Dr. Blobel: "With the just announced licensing agreement with Zensun (Shanghai) Science & Technology for Neucardin�, a novel, first-in-class treatment for chronic heart failure, we are fulfilling a major corporate goal to expand our product portfolio with a high quality, differentiated therapeutic with significant commercial potential to help drive our long-term growth. We believe that Neucardin has near-term commercial potential and can contribute to our long-term growth. We look forward to working with our partner Zensun to advance this promising product through the regulatory and commercial process."

CFO Trail

Mon, 08 Apr 2013 04:00:00 GMT

FOSTER CITY, CA--(Marketwired - Apr 8, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced the Audit Committee of the Company's Board of Directors has appointed PricewaterhouseCoopers LLP ("PwC") as its independent registered public accounting firm, effective immediately, to perform independent audit services beginning with the fiscal year ending December 31, 2013. PwC is a global network of firms that specializes in audit and assurance, tax and consulting services. The PwC network spans more than 150 countries and the firm has a long history of providing these solutions to clients in the pharmaceutical and life sciences industries around the globe, including the Chinese market.

"PwC is well respected for its expertise and experience in the global pharmaceutical industry, and especially for its deep knowledge of the China pharmaceuticals market and strong reputation for working effectively with companies in the US and in China to meet the challenges and opportunities of a complex and changing business environment," said Gary S. Titus, SciClone Chief Financial Officer. "We are extremely pleased to welcome PwC as SciClone's new independent auditor, and look forward to establishing a collaborative and productive relationship over many years."

As in the last several years, SciClone will continue to also work with another global, Big Four firm regarding non-audit work, such as internal controls and tax advisory matters in the US, China and other parts of the world where the Company has operations.

Comments & Business Outlook

Tue, 02 Apr 2013 04:00:00 GMT

FOSTER CITY, CA--(Marketwire - Apr 1, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported financial results for the fourth quarter and for the year ended December 31, 2012.

Overall revenues increased $23.7 million or 18% for the full year 2012 to $156.3 million, compared to $132.6 million for the prior year, including a $7.3 million or 7% increase in sales of ZADAXIN�. In the fourth quarter of 2012, ZADAXIN sales decreased $8.9 million, or 30% for the quarter, and overall sales decreased $6.5 million or 16% for the quarter, compared to the same period of the prior year. As discussed previously, during the third quarter and particularly in September 2012, the Company estimates there was an increase in ZADAXIN channel inventory levels, and believes that sales to its customers (including importers and distributors) exceeded the pace at which those customers were able to sell ZADAXIN through to other parties, primarily hospital pharmacies, and that channel inventory build-up of ZADAXIN also impacted fourth quarter ZADAXIN revenues. ZADAXIN channel inventory levels improved significantly in the fourth quarter of 2012, and the Company expects these levels to continue to improve in the first half of 2013 to more typical levels for imported drugs as the Company continues to expand market penetration and grow demand for ZADAXIN.

Commented Friedhelm Blobel, Ph.D., SciClone Chief Executive Officer: "In the fourth quarter, while we saw the impact on our revenue from the ZADAXIN channel inventory build-up that occurred primarily in the third quarter of last year, we also continued to make good progress in implementing important personnel, strategic, and operational improvements designed to reestablish the foundation for our continued revenue and profitability growth. Key to our progress has been strengthening our organization with new senior management in China and a re-energized ZADAXIN sales force committed to achieving our growth and financial goals while maintaining our commitment to act in compliance with all legal and regulatory requirements. We believe we are emerging from our second-half 2012 challenges as a stronger and more execution-focused company. We believe that our business fundamentals remain strong, and that our excellent cash position at the end of 2012 is an important asset that provides significant flexibility to accomplish our growth objectives."

Continued Dr. Blobel: "Our top priorities for 2013 and beyond are to continue to execute on our strategy to reestablish SciClone's growth trajectory: to implement our strategies for long-term growth of ZADAXIN; to expand Depakine sales and build momentum for potential market leaders, such as Aggrastat�; to enhance the quality and performance of our organization; to establish profitability in our product promotion business; to seek new product in-licensing opportunities to drive long-term growth; and to strengthen our position within the China pharmaceutical market."

The Company also announced the completion of its restatement for each of the first, second and third quarters of 2012 and for each of the second and third quarters of 2011 and for the year ended December 31, 2011 with the Company's Form 10-K for the period ended December 31, 2012 and Form 10-Q/As for the periods ended March 31, June 30 and September 30, 2012, each filed with the Securities and Exchange Commission today. The financial results in this press release reflect SciClone's financial results on a restated basis. As previously disclosed, the restatement primarily related to accounting errors within the Company's subsidiary NovaMed in China pertaining to the timing of Pfizer product revenue recognition and the recognition of product return reserves as to Aggrastat. Further information about the restatement is contained in the Company's Form 10-K for the period ended December 31, 2012. Comparable periods in 2011 referred to in this press release include the financial results of NovaMed only for the period subsequent to the acquisition of NovaMed on April 18, 2011.

Investor Alert

Mon, 25 Feb 2013 05:00:00 GMT

FOSTER CITY, CA--(Marketwire - Feb 22, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that it will be restating its financial statements for each of the first, second and third quarters of 2012 and financial statements for each of the second and third quarters of 2011 and for the year ended December 31, 2011. The restatement primarily relates to accounting errors within the Company's subsidiary NovaMed in China pertaining to the timing of Pfizer product revenue recognition and the recognition of product return reserves as to Aggrastat®. The Company acquired NovaMed in April 2011.

Commented Friedhelm Blobel, Ph.D., SciClone Chief Executive Officer: "The decision to proceed with a restatement, which is expected to increase our 2012 revenues and earnings, and decrease our 2011 revenues and earnings, was made after careful review of all the available facts, the applicable technical accounting rules regarding revenue recognition, and with the full cooperation and input of our independent registered public accounting firm, Ernst & Young. We were particularly cautious as we were concerned about any change that increases more recent year revenues and earnings. However, after our close review and our consultation with our auditors, we decided that this change was necessary for revenue recognition accounting compliance with Generally Accepted Accounting Principles (GAAP)."

As a separate matter, Ernst & Young has informed the Company that it has made a decision not to stand for re-appointment as its independent registered public accounting firm for the fiscal year ending December 31, 2013. Jon S. Saxe, J.D., SciClone Chairman of the Audit Committee, commented: "We want to express our sincere appreciation to Ernst & Young for their work for us over many years, and look forward to continuing to work with their team to complete the 2012 year-end audit. We want to emphasize that there have been no disagreements between the Company and Ernst & Young. The timing, which we fully support, permits us to coordinate the selection of a new auditing firm. We are having discussions with other auditing firms that have broad experience and expertise in working with companies operating in the China market and anticipate establishing a new relationship that would commence when Ernst & Young completes their work."

The Company believes the impact of the changes for the first nine months of 2012 will be to increase the Company's revenue by approximately $3 million, and to increase the Company's income before income taxes by approximately $2 million. The Company also believes the changes for the year ended December 31, 2011 will decrease the Company's revenue by approximately $1 million and decrease the Company's income before income taxes by less than $1 million. The Company believes the impact of the changes will be to increase goodwill related to the acquisition of NovaMed by approximately $2 million. While the Company expects that there would be other balance sheet and statement of cash flows adjustments for the relevant periods, the restatements would not impact the Company's previously reported cash or cash equivalents balances.

Comments & Business Outlook

Mon, 28 Jan 2013 05:00:00 GMT

Item 1.01 Entry into a Material Definitive Agreement.

On January 18, 2013, SciClone Pharmaceuticals, Inc. (the “Company”) (through its subsidiary SciClone Pharmaceuticals International China Holding Ltd.) entered into a new agreement under which Zadaxin® will be imported into the People’s Republic of China.

Under the Re-Exportation Agreement (the “Agreement”) with Sinopharm Holding Hong Kong Co., Limited (“Re-Exporter”) and Sinopharm Holding Lingyun Biopharmaceutical (Shanghai) Co., Limited (“Importer”), the Re-Exporter will purchase Zadaxin® from the Company’s subsidiary, which the Importer will import into the People’s Republic of China for further distribution.

The Re-Exporter’s and Importer’s rights under the Agreement are exclusive during the term of the Agreement. The Agreement term expires December 31, 2015, provided that the Agreement will automatically renew for one year terms unless cancelled by either party as provided in the Agreement.

The exclusive rights are subject to Re-Exporter’s fulfillment of certain conditions, including ordering minimum agreed quantities of Zadaxin based upon an annual budget determined by the parties.

The Company believes that the Agreement further strengthens its longstanding mutually beneficial relationship with the Sinopharm group, one of the leading companies operating in the healthcare market in China.

Comments & Business Outlook

Mon, 07 Jan 2013 05:00:00 GMT

FOSTER CITY, CA--(Marketwire - Jan 7, 2013) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced its anticipated 2013 initial revenue, earnings per share (EPS) and year-end cash guidance, and 2012 year-end cash position, as follows:

The Company anticipates 2013 sales revenue of $150 million - $155 million.
The Company expects 2013 non-GAAP EPS of $0.66 - $0.72 per share. SciClone's non-GAAP EPS excludes employee stock-based compensation from GAAP EPS.
The Company anticipates 2013 year-end cash and investments balances to be greater than $105 million excluding any impacts on cash balances associated with the Company's acquisition of new products, ongoing stock repurchase program and any other unbudgeted one-time cash expenses.
The Company expects cash and investments balances to be approximately $87 million (unaudited) at December 31, 2012. Excluding the cash impact of fourth quarter 2012 repurchases of common stock from the Company's share repurchase program, cash and investments would have been approximately $93 million (unaudited). Excluding the cash impact of the full-year 2012 repurchases of common stock from the Company's share repurchase program, cash and investments would have been approximately $112 million (unaudited).

"During the second half of 2012, we took important steps to strengthen our on-going business and improve our future financial performance, including recruiting high level executives with multinational pharmaceutical management experience into the China organization and significantly enhancing our sales and marketing strategies to increase demand and expand market penetration and growth for ZADAXIN� and our other products," commented Friedhelm Blobel, Ph.D., President and Chief Executive Officer. "We believe that implementation of these strategies will begin to positively affect sales growth over the next several quarters, and position SciClone to regain growth momentum as 2013 progresses."

SciClone expects to report its complete fourth quarter and full-year 2012 financial results in early March 2013.

Comments & Business Outlook

Fri, 09 Nov 2012 05:00:00 GMT

Third Quarter 2012 Results

On a pro forma basis, assuming NovaMed had been acquired on January 1, 2011, the revenues for the quarter and nine months ended September 30, 2012 of $40.7 million and $120.1 million would have been compared to $37.4 million and $100.2 million, an increase of $3.3 million or 9% and $19.9 million or 20%, respectively.
On a GAAP basis, SciClone's net loss for the third quarter of 2012 was $13.5 million, compared with net income of $10.2 million for the same period in the prior year, or a net loss of $0.24 per share on both a basic and diluted basis for the three months ended September 30, 2012, compared with a net gain of $0.18 and $0.17 per share on a basic and diluted basis, respectively, for the same period in the prior year.

"While we are pleased with ZADAXIN's continued growth and believe there is significant opportunity for strong growth long term with this key product, there are several internal and external factors affecting our short term revenue in the China market, which we are addressing," commented Friedhelm Blobel, Ph.D., SciClone's President and Chief Executive Officer.

"Externally, while the China pharmaceuticals market is predicted to grow at a rate of 15% or more annually, and demand for high quality products remains high, the Chinese government is implementing measures to contain healthcare costs. Relative to the recently announced 18% national price reduction of ZADAXIN, we were able to negotiate a favorable outcome with our importer that resulted in less than a 5% revenue impact on our company. This was a very favorable outcome for us, but we believe the prolonged uncertainty of the pricing issue had a dampening effect on ZADAXIN sales to the hospital pharmacies. Internally, while there are important strategic benefits of the NovaMed acquisition, we are disappointed that the overall business has under-performed. We have taken expedient action to identify and address issues across our China organization, some of which may have affected ZADAXIN sales to the hospital pharmacies, and to put strategies in place designed to strengthen our business and improve our financial performance in subsequent quarters. We believe these actions will have a positive, long-term effect on our business and re-establish our company on a sustainable growth trajectory."

Revised Financial Outlook for 2012

Since the acquisition of NovaMed, we have put strategies in place designed to expand and strengthen our sales and marketing infrastructure in China, with the goal of meeting the growing demand for pharmaceuticals in the China market. The expansion of our sales force, with the addition of more than 130 sales, marketing, and sales support representatives since last year, and organization of the sales force into business units focusing on ZADAXIN, primary care and oncology, were consistent with this goal. We believe that these strategies had a positive effect on our business in the year following the acquisition. However, we believe that several developments in the third quarter of 2012 had, or may yet have, material impacts on the growth rate of our business in China and the Company's financial results in the second half of 2012. These developments pertain to: a reduction in the retail price for ZADAXIN and other products which we believe had been anticipated by the market but occurred later in the year than expected; the channel inventory and sales growth of ZADAXIN; NovaMed acquisition matters, including our licensing and product services agreements with third parties and contingent consideration remeasurement; internal control issues primarily within the NovaMed organization; and management turnover. These issues are discussed in detail in the Management Discussion and Analysis section of the company's Form 10-Q filed on November 9, 2012.

We believe that these and other factors contributed to the increase in channel inventory, and due to that increase SciClone is revising down its anticipated 2012 revenues to be between $152 and $157 million, from previously anticipated revenues of between $165 and 170 million. The Company is also revising its previously anticipated non-GAAP earnings per share for the full year 2012 to be between $0.62 and $0.68 from the previously anticipated range of between $0.72 and $0.78. The Company is revising up the anticipated year-end cash, restricted cash and investments balances to greater than $90 million from previously anticipated cash balances of greater than $85 million, excluding the cash impact of any future repurchase of common stock from its share repurchase program.

Increase in Share Repurchase Plan Reserve

Our Board of Directors approved an increase in our reserve for our share repurchase program of $10.0 million. We have been repurchasing our stock over the last several quarters as the Board believes such purchases are in the interest of all of our stockholders. The balance available for repurchases as of today is $16.2 million.

Investor Alert

Mon, 10 Sep 2012 04:00:00 GMT

FOSTER CITY, CA--(Marketwire - Sep 10, 2012) - SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that Mark Lotter will resign from the position of Chief Executive Officer of SciClone's China Operations at the end of this year and plans to relocate from Shanghai to London in order to spend more time with his family. At that time Mr. Lotter will also resign his position as a director of the Company.

The Company has started a formal search for a permanent CEO for our China Operations with significant multinational pharmaceutical industry experience. In the coming months our CEO, Friedhelm Blobel, will work with Mark and the management team to assure a smooth transition.

Commented Dr. Blobel: "The SciClone Board of Directors joins me in expressing our appreciation to Mark for his many contributions to our Company's success following the acquisition of NovaMed in April 2011. As NovaMed's founder, Mark successfully grew this promising company into a well-respected specialty pharmaceutical company in China with a valuable product portfolio and product pipeline. All of us have enjoyed working in partnership with Mark on the successful integration of NovaMed into SciClone and on helping our combined Company to strengthen its standing in the top echelon of China pharmaceutical companies. Mark has had a long and productive career as a pharmaceutical executive, and we are confident that his talents and experience will serve him well in his future endeavors."

Commented Mark Lotter: "I would like to thank all involved for their support in building what I believe has become the leading China specialty pharmaceutical company. SciClone today has a strong and experienced China management team, including seasoned general managers of our three business units, a strong portfolio of products and key strategic collaborations. Founding NovaMed, doing the merger and leading the SciClone China operations for the last year and half has been a highly rewarding experience. I remain confident that SciClone will grow even stronger and continue to build its position in China. While my decision to leave will enable me to spend more time with my family, I am fully committed to facilitating a smooth transition process over the next few months."

Comments & Business Outlook

Wed, 15 Aug 2012 04:00:00 GMT

Second Quarter 2012 Results (reported on 8/8/2012)

SciClone reported that revenues increased by 22% for the quarter ended June 30, 2012, to $40.3 million, compared to revenues for the same period in the prior year of $33.1 million.
SciClone's non-GAAP net income for the second quarter of 2012 was $11.4 million, compared with non-GAAP income of $7.5 million for the same period of last year, or $0.20 and $0.19 per share on a basic and diluted basis, respectively, for the three months ended June 30, 2012, and $0.13 per share on both a basic and diluted basis for the three months ended June 30, 2011.

Friedhelm Blobel, Ph.D., SciClone President and Chief Executive Officer, commented: "We are pleased with SciClone's continued strong financial performance, most notably, the increase in ZADAXIN revenue by 19% and 27% for the quarter and year-to-date, and our ability to deliver an impressive rate of growth that continues to exceed that of the China pharmaceuticals market. We are also pleased to report that the excellent growth includes our primary care product line, indicating increasing momentum for our high-potential products Depakine®, Aggrastat® and Stilnox®, as well as in our oncology product line, led by Estracyt®, Holoxan® and Endoxan®. We believe that the China market offers extraordinary growth and expansion opportunities, and that we have the right management team, commercial tools, resources and strategies in place to continue to produce impressive revenue and profitability results, and to build our success as a top-tier pharmaceutical company."

Research

Wed, 11 Jul 2012 04:00:00 GMT

On 7/11/2012 we sent our premium members an email on our due diligence for SCLN.

Our due diligence revealed that while SciClone (SCLN) promises much for its drug Zadaxin, reputable studies indicate it delivers little if any benefit to patients. In theory, Zadaxin should improve the effect of pegylated interferon alpha, Roche's leading drug for Hepatitis treatment, and is also touted as being effective when used in conjunction with other drugs to aid the healing process by boosting the immune system. Zadaxin is essentially considered a vaccine enhancer. In practice, Zadaxin has failed multiple Phase III FDA studies for various indications of effect. It should therefore come as no surprise that SCLN has not been able to win approval for sale of Zadaxin in the U.S. Furthermore, Zadaxin is not approved for sale in Europe. These circumstances exist despite a 10+ year marketing/distribution collaboration with and $3.7 million funding from Italian distributor Sigma-Tau.

We believe the risks presented in SCLN's recent history, from a regulatory and operational perspective, are enormous enough that the stock should trade between $2.65 and $3.80 in the near-term. We are not alone in our opinion. An analyst at BWS financial concludes that the recent strength in SCLN shares will soon dissipate due in part to many of the same risks we outline in this report.

To see entire report go here.

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