UPDATE 1-SciClone says adjuvant raises H1N1 vaccine response

* Zadaxin when used with Novartis vaccine raises immunity

* Shares up as much as 14 pct (Adds analyst comments, updates share movement)

By Anand Basu

BANGALORE, Jan 12 (Reuters) - SciClone Pharmaceuticals Inc (SCLN.O) said its adjuvant, Zadaxin, in combination with Novartis' (NOVN.VX) H1N1 vaccine increased immune response, sending SciClone's shares up as much as 14 percent.

An adjuvant is an ingredient that boosts the immune-system response, which means that less of the active ingredient is needed in each dose.

Zadaxin given with the H1N1, or swine flu, vaccine led to a significant increase in the percentage of subjects who seroconverted at 21 days after vaccination, compared to those who received the vaccine alone, SciClone said.

SciClone, and its partner Sigma-Tau S.p.A said 89 percent of patients in the low-dose Zadaxin arm achieved seroconversion -- a significant increase in specific antibody -- as did 88 percent of patients in the high-dose arm, compared to 56 percent in the vaccine-only arm.

BWS Financial analyst Hamed Khorsand said the top line efficacy results are impressive. But, it's tough to put a value on the aspects of Zadaxin because it's not the vaccine itself, but a booster for the vaccine, he added.

Khorsand, who has a "hold" rating on SciClone shares, expects the company to market the adjuvant in countries like China, but said "it's more of a 2011 kind of story."

On Monday, SciClone forecast better-than-expected 2010 revenue, driven by its strong international commercial operations. [ID:nSGE60A0GE]

Shares of SciClone were up 25 cents at $3.02 Tuesday morning on Nasdaq. They touched a high of $3.17 earlier in the day. (Reporting by Anand Basu in Bangalore; Editing by Vinu Pilakkott, Maju Samuel)