SciClone Reports Results for the First Quarter 2008

Thu May 8, 2008 6:30am EDT

* Reuters is not responsible for the content in this press release.

  FOSTER CITY, CA, May 08 (MARKET WIRE) -- 
 SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported results for
the first quarter ended March 31, 2008.

    "Over the course of the first quarter, product revenues from ZADAXIN(R)
sales
increased 23% to exceed $10 million, and for the first time, we are providing
quarterly financial data for SciClone China to quantify the value of this
unique asset," said Friedhelm Blobel, Ph.D., President and Chief Executive
Officer of SciClone Pharmaceuticals, Inc.  "In the United States and Europe, we
advanced our pipeline of development-stage compounds by initiating our phase
2 RP101 clinical trial for pancreatic cancer and continuing enrollment in the
phase 2 SCV-07 proof-of-concept trial in hepatitis C (HCV). In addition, we
look forward to unblinding and reporting final data for our phase 3 trial
evaluating thymalfasin in triple therapy to treat patients infected with HCV who
have not responded to standard therapy in the third quarter of 2008."

    Financial Results

    For the first quarter 2008, product revenues from the sale of ZADAXIN
increased
by 23% to $10,634,000, compared with product revenues of $8,644,000 for the
first quarter 2007.  The increase in product revenues for the first quarter 2008
is primarily attributable to an increase in the quantity of ZADAXIN sold in
the People's Republic of China ("China"), which accounted for approximately 94%
of total ZADAXIN sales for the quarter.

    Research and development expenses for the first quarter 2008, including
related
party research and development, totaled $7,549,000, compared with $2,423,000
for the first quarter 2007.  The increase was due to expenses associated with
clinical development activities for RP101, SCV-07, and thymalfasin and
includes a $1.3 million milestone payment paid to RESprotect GmbH upon
initiation of the phase 2 RP101 clinical trial. General and administrative
expenses for the first quarter 2008 were $3,021,000, compared with $2,610,000
for the first quarter of 2007.

    Net loss for the first quarter 2008 totaled $5,659,000, or $0.12 per
share,compared with $624,000, or $0.01 per share, for the first quarter 2007.

    Cash, cash equivalents and short-term investments totaled $25,767,000 at
March 31, 2008, compared with $35,281,000 at December 31, 2007 and
$38,986,000 at March 31, 2007.

    SciClone China Quarterly Financial Data

    For the first quarter of 2008, SciClone China generated product revenues
of$9,990,000 from sales of ZADAXIN, a 26% increase compared with $7,918,000 of
product
revenues for the first quarter 2007.  SciClone China operating income for the
first
quarter of 2008 was $4,807,000.  These SciClone China results are provided on a
GAAP basis and exclude inter-company expenses. Inter-company expenses payable to
the Company from SciClone China were $597,000 in the first quarter.

    Recent Highlights

--  SciClone presented a corporate overview at several investor
    conferences.

--  SciClone hosted symposia at the European Association for the Study of
    the Liver and the Asian Pacific Association for the Study of the Liver
    where medical experts presented the benefits and use of thymalfasin for the
    treatment of hepatitis B, hepatitis C, and liver cancer.

--  SciClone Pharmaceuticals International Ltd. (SPIL) received approval
    from the Russian Ministry of Health and Social Development to commercialize
    ZADAXIN for treatment of hepatitis B and hepatitis C. SPIL expects to
    record initial sales of ZADAXIN in Russia during the second quarter of
    2008.
    

    
Financial Guidance for 2008

    For the full year 2008, SciClone expects product revenues of $42 million
to$44 million, a 14 to 19% increase compared with revenues of $37 million
for2007, primarily due to the continued growth of ZADAXIN sales to China.
SciClone
expects research and development expenses of approximately $27 million for
2008, of which approximately $12 million relate to the ongoing phase 2
pancreatic
cancer clinical trial for RP101.  Beyond 2008, the Company expects a
substantial reduction in expenses required to complete the phase 2 RP101
clinical
trial. For the full year 2008, SciClone expects net loss to be $17 million to
$19
million, or $0.38 to $0.41 per share, and expects to end 2008 with $10
million in cash, cash equivalents, and short-term investments.

    For SciClone China, SciClone expects product revenues of between $40 million
to $42 million and operating income of $16 million to $18 million for the full
year 2008.

    Conference Call

    SciClone will host a conference call at 11:00 a.m. ET (8:00 a.m. PT)
today,Thursday, May 8, 2008.  Management will review its operating results for
the
first quarter 2008 and give a business update.  A live webcast can be
accessed by visiting the Investor Relations section of SciClone's website at
www.sciclone.com.


DATE:          Thursday, May 8, 2008
TIME:          11:00 a.m. ET (8:00 a.m. PT)
WEBCAST:       Live call and replay accessible at www.sciclone.com
LIVE CALL:     877-419-6600 (U.S./Canada)
               719-325-4896 (International)
REPLAY:        888-203-1112  (U.S./Canada)
               719-457-0820 (International)
               Passcode:  2400325
               (Replay and available from 2:00 p.m. ET on May 8, 2008
               through 11:59 p.m. ET on June 6, 2008)

    
About SciClone

    SciClone Pharmaceuticals is a biopharmaceutical company engaged in the
development of therapeutics to treat life-threatening diseases. SciClone's lead
product ZADAXIN(R) is currently being evaluated in a late-stage clinical trial
for
the treatment of hepatitis C, and successfully completed a phase 2 clinical
trial
in malignant melanoma. ZADAXIN is approved for sale in select markets
internationally, most notably in China where SciClone has an established sales
and marketing operation. A key part of SciClone's strategy is to leverage
its advantage and broaden its portfolio in the rapidly growing Chinese market by
in-licensing or acquiring the marketing rights to other products, such as DC
Bead(TM). For the U.S. market, SciClone's other clinical-stage drug development
candidates are RP101 for the treatment of pancreatic cancer and SCV-07 for
the treatment of hepatitis C. For more information about SciClone, visit
www.sciclone.com.

    The information in this press release contains forward-looking statements
including
our expectations and beliefs regarding future sales and financial results for
2008,
and progress, timing and results of our clinical trials. Words such as
"expects,"
"plans," "believe," "may," "will," "anticipated," "intended" and variations of
these
words or similar expressions are intended to identify forward-looking
statements. In addition, statements that refer to expectations, goals,
projections
or other characterizations of future events or circumstances, including any
underlying
assumptions,are forward-looking statements. These statements are not guarantees
of
future performance and are subject to risks, uncertainties and assumptions that
are
difficult to predict. Therefore, our actual results could differ materially and
adversely from those expressed in any forward-looking statements as a result of
various
factors, including changes in demand for ZADAXIN, the progress or failure of
clinical trials, our actual experience in executing on our objectives, the
performance of our partners, maintenance of the sufficiency and eligibility of
the
enrolled patient population, unanticipated delays or additional expenses
incurred
during our clinical trials, our future cash requirements, delays in analyzing
andsynthesizing data obtained from clinical trials, the performance and
futureactions of our strategic partners, unexpected delays in clinical trial
enrollment, future actions by the U.S. Food and Drug Administration or
equivalent regulatory authorities in Europe and the fact that experimental data
and
clinical results derived from studies with a limited group of patients may
not be predictive of the results of larger studies, as well as other risks
and uncertainties described in SciClone's filings with the Securities and
Exchange Commission. Further, although our financial guidance is based on our
current estimates, factors such as the actual timeline and design of the phase 3
melanoma clinical trial and final decisions regarding expense sharing
arrangements for the trial could alter the estimates of our research and
development expenses, net loss and year-end cash balance for 2008.


                      SCICLONE PHARMACEUTICALS, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)

                                                    Three months ended
                                                         March 31,
                                                    2008          2007
                                                ============  ============

Product sales                                   $ 10,634,000  $  8,644,000

Cost of product sales                              1,967,000     1,628,000
                                                ------------  ------------

Gross margin                                       8,667,000     7,016,000

Operating expenses:
   Research and development                        7,422,000     2,296,000
   Related party research and development            127,000       127,000
   Sales and marketing                             3,948,000     3,024,000
   General and administrative                      3,021,000     2,610,000
                                                ------------  ------------
Total operating expenses                          14,518,000     8,057,000
                                                ------------  ------------

Loss from operations                              (5,851,000)   (1,041,000)

Interest and investment income                       261,000       453,000
Interest and investment expense                            -       (10,000)
Other income (expense), net                           37,000        (5,000)
                                                ------------  ------------
Loss before provision for income tax              (5,553,000)     (603,000)
Provision for income tax                             106,000        21,000
                                                ------------  ------------

Net loss                                        $ (5,659,000)     (624,000)
                                                ============  ============

Basic and diluted net loss per share            $      (0.12) $      (0.01)

Weighted average shares used in computing
 basic and diluted net loss per share             46,190,046    46,073,995

                       SCICLONE PHARMACEUTICALS, INC.
                        CONSOLIDATED BALANCE SHEETS

                                  ASSETS

                                                  March 31,   December 31,
                                                    2008          2007
                                                ============  ============
                                                (unaudited)
Current assets:
  Cash and cash equivalents                     $ 25,157,000  $ 31,817,000
  Restricted short-term investments                   78,000        72,000
  Other short-term investments                       532,000     3,392,000
  Accounts receivable, net of allowance of
   $15,000 at March 31, 2008 and
   December 31, 2007                              14,078,000    12,650,000
  Inventories                                      5,466,000     5,579,000
  Prepaid expenses and other current assets        2,946,000     2,949,000
                                                ------------  ------------
Total current assets                              48,257,000    56,459,000
Property and equipment, net                          730,000       774,000
Intangible assets, net                               315,000       332,000
Long-term investments                              1,713,000             -
Other assets                                       1,025,000     1,094,000
                                                ------------  ------------
Total assets                                    $ 52,040,000  $ 58,659,000
                                                ============  ============

                  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                              $  1,495,000  $  1,937,000
  Accrued compensation and employee benefits       1,202,000     1,758,000
  Accrued professional fees                          782,000       699,000
  Other accrued expenses                           3,077,000     3,394,000
  Accrued clinical trials expense                  1,313,000     1,614,000
  Accrued clinical trials expense due to
   related party                                   1,747,000     1,620,000
  Deferred revenue                                    26,000        37,000
                                                ------------  ------------
Total current liabilities                          9,642,000    11,059,000
Other long-term liabilities                          203,000       341,000
Commitments and contingencies
Stockholders' equity:
  Preferred stock; $0.001 par value; 10,000,000
   shares authorized; no shares outstanding                -             -
  Common stock; $0.001 par value; 75,000,000
   shares authorized; 46,219,562
   and 46,121,562 shares issued and
   outstanding at March 31, 2008
   and December 31, 2007, respectively                46,000        46,000
  Additional paid-in capital                     216,288,000   215,633,000
  Accumulated other comprehensive income              22,000        82,000
  Accumulated deficit                           (174,161,000) (168,502,000)
                                                ------------  ------------
Total stockholders' equity                        42,195,000    47,259,000
                                                ------------  ------------
Total liabilities and stockholders' equity      $ 52,040,000  $ 58,659,000
                                                ============  ============

                      SCICLONE PHARMACEUTICALS, INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                    Three months ended
                                                         March 31,
                                                    2008          2007
                                                ============  ============

Operating activities:
Net loss                                        $ (5,659,000) $   (624,000)
Adjustments to reconcile net loss
 to net cash used in operating activities:
  Non cash expense related to employee stock
   options                                           497,000       588,000
  Amortization of interest on investments
   held-to-maturity                                        -       (51,000)
  Depreciation and amortization                       76,000        54,000
  Changes in operating assets and liabilities:
    Accounts receivable, net                      (1,428,000)   (2,622,000)
    Inventories                                      125,000      (299,000)
    Prepaid expenses and other assets                 72,000       (61,000)
    Accounts payable and other accrued expenses     (759,000)      472,000
    Accrued compensation and employee benefits      (556,000)     (789,000)
    Accrued clinical trials expenses                (301,000)            -
    Accrued clinical trials expense due to
     related party                                   127,000      (359,000)
    Accrued professional fees                         83,000      (100,000)
    Deferred revenue                                 (11,000)      (57,000)
    Long-term liabilities                           (138,000)       29,000
                                                ------------  ------------
Net cash used in operating activities             (7,872,000)   (3,819,000)
                                                ------------  ------------

Investing activities:
  Purchases of property and equipment                (15,000)       (6,000)
  Sales (purchases) of short-term investments      1,025,000       (57,000)
                                                ------------  ------------
Net cash provided by (used in) investing
 activities                                        1,010,000       (63,000)
                                                ------------  ------------

Financing activities:
  Proceeds from issuances of common stock,           146,000       166,000
                                                ------------  ------------
Net cash provided by financing activities            146,000       166,000
                                                ------------  ------------

Effect of exchange rate changes on cash and
 cash equivalents                                     56,000             -
                                                ------------  ------------

Net decrease in cash and cash equivalents         (6,660,000)   (3,716,000)
Cash and cash equivalents, beginning of period    31,817,000    25,615,000
                                                ------------  ------------
Cash and cash equivalents, end of period        $ 25,157,000  $ 21,899,000
                                                ============  ============

    


Corporate Contact:
Friedhelm Blobel, Ph.D.
President and Chief Executive Officer
SciClone Pharmaceuticals, Inc.
650-358-3437

Copyright 2008, Market Wire, All rights reserved.

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