Welcome!

News Feed Item

SciClone Reports Financial Results for the First Quarter 2014

ZADAXIN(R) Revenues up 30% Compared to First Quarter 2013

FOSTER CITY, CA -- (Marketwired) -- 05/12/14 -- SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported financial results for the first quarter ended March 31, 2014.

  • Revenues: Revenues for the first quarter 2014 were $26.6 million, compared to $29.8 million for the same period in 2013. On the basis of the Company's core business, which includes ZADAXIN®, Aggrastat® and all Pfizer and Baxter products, revenues in the first quarter represent a growth of 31%.
  • GAAP Basic EPS: GAAP basic earnings per share for the first quarter 2014 were $0.08, compared to $0.08 for the same period in 2013.
  • Non-GAAP Basic EPS: Non-GAAP basic earnings per share for the first quarter 2014 were $0.10, compared to $0.10 for the same period in 2013.

ZADAXIN revenues were $24.7 million for the first quarter 2014, a $5.7 million or 30% increase, compared to $19.0 million in the same period in 2013. SciClone believes its ZADAXIN product revenues in the first half of 2013, and the fourth quarter of 2012, were adversely affected by the increase in channel inventory it experienced in the latter half of 2012, and believes that ZADAXIN channel inventory has now returned to normal levels. Promotion services revenues were $0.5 million for the first quarter of 2014, derived mainly from the Company's product promotion agreement with Baxter. As a result of the expiration of the promotion agreements with Sanofi Aventis S.A. ("Sanofi") at the end of their term on December 31, 2013, the Company's promotion agreement revenues were $8.8 million or 95% lower compared to $9.3 million recorded in the same period in 2013.

On a GAAP basis, SciClone reported net income for the first quarter of 2014 of $4.1 million or $0.08 per share on both a basic and diluted basis for the first quarter 2014, compared to net income of $4.2 million for the same period in the prior year or $0.08 per share on both a basic and diluted basis for the same period in the prior year.

SciClone's non-GAAP net income for the first quarter of 2014 was $5.0 million or $0.10 and $0.09 per share on a basic and diluted basis, respectively, compared to $5.2 million or $0.10 and $0.09 per share on a basic and diluted basis, respectively, for the same period of last year.

"We are pleased with our performance in the first quarter of 2014, especially relative to the continuation of strong growth in ZADAXIN sales which began to resume in the fourth quarter of 2013," said Friedhelm Blobel, Ph.D., SciClone's Chief Executive Officer. "We believe that the sales and marketing strategies we have implemented over the last several months are succeeding in driving demand and increasing market penetration. We have seen a meaningful increase in the number of hospital departments where ZADAXIN is being prescribed, and an increase in the number of customers within established departments already utilizing ZADAXIN, thus underscoring the successful implementation of our 'wider and deeper' strategy. We believe that we are on track to achieve our guidance for the year, and are optimistic that we will continue to see growth in ZADAXIN sales, as well as in our primary care/cardiovascular and oncology businesses this year. We see evidence that the China pharmaceuticals market is growing again at a robust rate, and continues to represent a significant opportunity for SciClone. We are actively engaged in seeking additional business development opportunities to further expand our product portfolio, and believe that we are well-positioned to attract new partners. We are committed to continuing our strong focus on constant improvement in our company-wide compliance program, and believe that is a key, differentiating asset for our Company."

Sales and marketing expenses for the first quarter of 2014 were $9.8 million, compared with $11.2 million for the same period of the prior year. SciClone restructured its sales force in the fourth quarter of 2013 related to the expiration of the Sanofi distribution agreements, and the sales force has been reduced by over 200 salespersons by March 31, 2014, compared to one year ago. In addition, sales and marketing expenses decreased for the first quarter of 2014 related to the expiration of the Sanofi agreements and the reduction in costs associated with marketing the products under these agreements. These reductions were partially offset by growth in the sales and marketing efforts for ZADAXIN.

Research and development (R&D) expenses for the first quarter of 2014 were $1.5 million, compared with $0.4 million of R&D expenses for the same period of last year, an increase of $1.1 million, primarily related to costs incurred in the evaluation of potential sepsis clinical studies for ZADAXIN.

General and administrative (G&A) expenses for the first quarter of 2014 were $6.0 million, compared with $8.6 million for the same period in the prior year, primarily related to lower legal costs associated with the ongoing government investigation and other legal matters and lower accounting fees that were incurred in the prior year period related to the restatement of the consolidated financial statements for the year ended December 31, 2011, and certain quarters of 2011 and 2012.

As of March 31, 2014, cash and cash equivalents, restricted cash and investments totaled $87.5 million, compared to $85.9 million as of December 31, 2013. SciClone has a share repurchase program under which its Board of Directors authorized $50.5 million, of which approximately $43.4 million had been utilized through March 31, 2014, and approximately $7.1 million remained available.

SciClone has presented non-GAAP information above as the Company believes this non-GAAP information is useful for investors, taken in conjunction with SciClone's GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of SciClone's operating results as reported under GAAP. The non-GAAP calculations and reconciliation are provided in the accompanying table titled "Reconciliation of GAAP to Non-GAAP Net Income."

Conference Call Today

SciClone is hosting a conference call today at 8:30 am ET (5:30 am PT) to provide a financial update. The call will be hosted by Friedhelm Blobel, Ph.D., President and CEO, and Wilson W. Cheung, Senior Vice President and CFO.

LIVE CALL:
866.318.8614 (U.S./Canada)
617.399.5133 (International)
Passcode: 49837055

REPLAY:
888.286.8010 (U.S./Canada)
617.801.6888 (International)
Passcode: 63487397
(Replay available from May 12, 2014, at 12:30 pm ET until 11:59 pm ET on May 19, 2014)

The conference call will contain forward-looking statements. Interested parties who wish to listen to the webcast should visit the Investor Relations section of SciClone's website at www.sciclone.com. The information provided on the teleconference is accurate only at the time of the conference call, and SciClone will take no responsibility for providing updated information except as required by law.

About SciClone

SciClone Pharmaceuticals is a revenue-generating, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio spanning major therapeutic markets including oncology, infectious diseases and cardiovascular disorders. SciClone's proprietary lead product, ZADAXIN® (thymalfasin), is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV), and certain cancers, and as a vaccine adjuvant, according to the local regulatory approvals. Through its promotion business with pharmaceutical partners, SciClone markets multiple branded products in China which are therapeutically differentiated. The Company has successfully in-licensed products with the potential to become future market leaders and to drive the Company's long-term growth. SciClone is a publicly-held corporation based in Foster City, California, and trades on the NASDAQ Global Select Market under the symbol SCLN. For additional information, please visit www.sciclone.com.

Forward-Looking Statements

This press release contains forward-looking statements regarding expected financial results and expectations. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risks and uncertainties relating to: the course, cost and outcome of regulatory matters, including future pricing decisions by authorities in China; the on-going regulatory investigations and expenses related thereto, including potential fines and/or other remedies; the Company's ability to execute on its goals in China and on its objectives for revenue in fiscal 2014; the dependence of its current and future revenue and prospects on third-party license, promotion or distribution agreements, including the need to renew such agreements, enter into similar agreements, or end arrangements that the Company does not believe are beneficial; the uncertainties as to the impact of the non-renewal of our agreement with Sanofi; operating an international business; uncertainty in the prospects for unapproved products, including ProFlow™ and Neucardin®, including uncertainties as to pricing and competition and risks relating to the clinical trial process and related regulatory approval process and the process of initiating trials at, and enrolling patients at, clinical sites; and the effect of changes in its practices and policies related to the Company's compliance programs. SciClone cannot predict the timing or outcome of the ongoing SEC and DOJ investigations, or of the level of its efforts required to cooperate with those investigations, however, the Company has incurred substantial expenses in connection with the investigations and related litigation and expects to incur substantial additional expense, and the investigations could result in fines that exceed the minimum amount accrued and further changes in its internal control or other remediation measures that could adversely affect its financial results. Please also refer to other risks and uncertainties described in SciClone's filings with the SEC. All forward-looking statements are based on information currently available to SciClone and SciClone assumes no obligation to update any such forward-looking statements.

SciClone, SciClone Pharmaceuticals, the SciClone Pharmaceuticals design, the SciClone logo and ZADAXIN are registered trademarks of SciClone Pharmaceuticals, Inc. in the United States and numerous other countries.


                       SCICLONE PHARMACEUTICALS, INC.
                UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except per share amounts)

                                                      Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                       2014         2013
                                                   -----------  -----------
Revenues:
  Product sales, net                               $    26,064  $    20,533
  Promotion services                                       501        9,273
                                                   -----------  -----------
    Total net revenues                                  26,565       29,806

Operating expenses:
  Cost of product sales                                  4,561        4,618
  Sales and marketing                                    9,834       11,199
  Research and development                               1,476          365
  General and administrative                             6,033        8,600
                                                   -----------  -----------
    Total operating expenses                            21,904       24,782
                                                   -----------  -----------

Income from operations                                   4,661        5,024

Non-operating income (expense):
  Interest income                                           19           19
  Interest expense                                         (29)         (37)
  Other expense, net                                      (119)         (16)
                                                   -----------  -----------
Income before provision for income tax                   4,532        4,990
Provision for income tax                                   398          787
                                                   -----------  -----------
Net income                                         $     4,134  $     4,203
                                                   ===========  ===========

Basic net income per share                         $      0.08  $      0.08
Diluted net income per share                       $      0.08  $      0.08

Weighted average shares used in computing:
  Basic net income per share                            52,026       54,084
  Diluted net income per share                          53,234       55,472



                       SCICLONE PHARMACEUTICALS, INC.
                RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
                  (in thousands, except per share amounts)
                                 (unaudited)

                                                        Three Months Ended
                                                            March 31,
                                                     -----------------------
                                                         2014        2013
                                                     ----------- -----------
GAAP net income                                      $     4,134 $     4,203
Non-GAAP adjustment:
  Employee stock-based compensation                          882       1,019
                                                     ----------- -----------
    Non-GAAP net income                              $     5,016 $     5,222
                                                     =========== ===========

Non-GAAP basic net income per share                  $      0.10 $      0.10
Non-GAAP diluted net income per share                $      0.09 $      0.09

Weighted average shares used in computing:
Non-GAAP basic net income per share                       52,026      54,084
Non-GAAP diluted net income per share                     53,234      55,472

SciClone management uses these non-GAAP financial measures to monitor and evaluate the Company's operating results and trends on an on-going basis and internally for operations, budgeting and financial planning purposes. SciClone believes the non-GAAP information is useful for investors by offering them the ability to better understand how management evaluates the business. These non-GAAP measures have limitations, however, because they do not include all items of income and expenses that affect SciClone. These non-GAAP financial measures that management uses are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP.

SciClone's non-GAAP financial measures exclude the following item from GAAP net income and net income per share:

  • Employee stock-based compensation. The effects of non-cash employee stock-based compensation.


                       SCICLONE PHARMACEUTICALS, INC.
                    UNAUDITED SELECTED BALANCE SHEET DATA
                               (in thousands)

                                                   March 31,    December 31,
                                                      2014          2013
                                                 ------------- -------------


Cash, cash equivalents, and restricted cash and
 investments                                     $      87,545 $      85,878
Accounts receivable                                     32,271        40,008
Inventories                                             14,049        15,238
Goodwill                                                34,435        35,357
Total assets                                           172,192       180,227
Total current liabilities                               23,560        33,588
Deferred tax liabilities                                   101           368
Short-term borrowings                                    1,608         1,651
Total shareholders' equity                             148,455       146,595

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...