SciClone Pharmaceuticals Provides Fourth Quarter and Year End 2010 Results and 2011 Guidance

FOSTER CITY, CA, Mar 31 (MARKET WIRE) --
SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported results for
the fourth quarter and year ended December 31, 2010. Revenues for the
fourth quarter of 2010 grew to $23.6 million, or an increase of 30%
compared to revenues of 18.1 million in the fourth quarter of 2009. Net
income for the fourth quarter of 2010 was $3.8 million or $0.08 per share
on a basic and diluted basis, compared with a net income of $2.4 million
or $0.05 per share, on both a basic and diluted basis, for the same
period of 2009.

For the year ended December 31, 2010, total revenues grew to $85.1
million, or an 18% increase, compared with revenues of $72.4 million for
the year ended December 31, 2009. For the year ended December 31, 2010,
net income was $21.1 million, or $0.44 and $0.43 per share on a basic and
diluted basis, respectively, compared with a net income of $11.9 million
or $0.26 and $0.25 per share on a basic and diluted basis for the same
period in 2009.

"2010 was a very successful and profitable year for SciClone, as we
continued to implement our China focused strategy, increasing revenues
substantially for another year," commented Friedhelm Blobel, Ph.D.,
SciClone's President and Chief Executive Officer. "Due to the strong
infrastructure we have built in China, we expect 2011 to become another
strong year, further establishing SciClone as a growing specialty
pharmaceutical company."

Research and development expenses for the fourth quarter of 2010 totaled
$4.7 million compared with $4.0 million for the fourth quarter of 2009.
For the year ended December 31, 2010, research and development expenses
were $12.4 million, compared with $16.5 million for the same period in
2009. The decrease in research and development expenses for the year
ended December 31, 2010, compared to the corresponding period of 2009,
was primarily related to the timing of clinical trial-related expenses.

Sales and marketing expenses for the fourth quarter of 2010 were $6.0
million, compared with $5.3 million in the fourth quarter of 2009. For
the year ended December 31, 2010, sales and marketing expenses were $22.0
million, compared with $18.8 million for the corresponding period of
2009. The increase in sales and marketing expenses for the year ended
December 31, 2010, compared to the year ended December 31, 2009, was
primarily due to increased marketing activities associated with the
expanding sales efforts for SciClone's lead product, ZADAXIN, in China.

General and administrative expenses for the fourth quarter of 2010 were
$5.2 million, compared with $3.4 million for the fourth quarter of 2009.
For the year ended December 31, 2010, general and administrative expenses
were $15.6 million compared with $12.5 million in 2009. The increase in
general and administrative expenses for the year ended December 31, 2010,
compared to the prior year, was primarily a result of higher corporate
and legal expenses in connection with the investigations of the
Securities and Exchange Commission (SEC) and the Department of Justice
(DoJ) announced in August 2010, as well as SciClone's business
development efforts for China.

Provision for income tax for the fourth quarter of 2010 was $1.5 million,
compared with $0.2 million for the fourth quarter of 2009. For the year
ended December 31, 2010, provision for income tax was $2.2 million,
compared with $0.6 million in 2009. The increases resulted from an
increase in operating activities in China and an increase in the
statutory tax rate in China. In addition, for the fourth quarter and year
ended December 31, 2010, SciClone recorded an additional tax expense of
$0.8 million related to its uncertain tax position in China.

Cash, cash equivalents and short and long-term investments totaled $56.5
million at December 31, 2010, compared with $31.8 million at December 31,
2009. The increase in cash for the year ended December 31, 2010, is
primarily a result of SciClone's operating net income. SciClone also has
a $15 million credit line with Silicon Valley Bank. As of December 31,
2010, SciClone has borrowed $2.5 million on the bank line which is
included in the 2010 year end cash balance.

The Company also announced it has identified two material weaknesses in
its internal control over financial reporting that have not been
remediated. The material weaknesses relate to controls over (i)
implementation of the Company's policy on compliance with laws and (ii)
accounting for income taxes. The Company has commenced remediation
measures as to both of these material weaknesses.

Financial Outlook for 2011
SciClone anticipates 2011 revenues between
$100 and $103 million. The Company expects earnings per share for the
full year 2011 to be between $0.51 and $0.56. SciClone cash, cash
equivalents and investments at December 31, 2011, are projected to be
greater than $70 million.

The Company anticipates that the expenses associated with the ongoing
investigations of SciClone by the SEC and the DOJ, as well as the
independent investigation by a special committee of SciClone's Board of
Directors, may continue to significantly impact SciClone's earnings.
Additionally, pricing for ZADAXIN is still being reviewed by the
authorities in China as part of health care reform in that country.
SciClone has assumed a modest price change in its current financial
outlook, and more significant price changes could adversely impact the
guidance.

Internal Investigation
The United States SEC and the United States DOJ
are each conducting formal investigations of the Company regarding a
range of matters including the possibility of violations of the Foreign
Corrupt Practices Act ("FCPA"). SciClone's Board of Directors appointed a
special committee of independent directors to oversee SciClone's response
to the government inquiries.

The special committee has not concluded its investigation or reached any
conclusions, to date, nor has the special committee or management made a
final determination regarding whether any violation of the FCPA or any
other law or regulation has occurred. However, the Company anticipates
that the special committee will finalize its findings in the near future,
which may include findings regarding potential FCPA issues and
recommendations regarding additional remediation measures. In the course
of its review the special committee has instructed management to (i)
evaluate and to expand the Company's training of employees regarding
understanding and compliance with laws including the FCPA and other
anti-bribery laws and regulations, (ii) evaluate SciClone's existing
compliance and anti-bribery guidelines and to prepare a new, more
detailed, guideline for implementation after review by the Company's
Board and/or committees of the Board, and (iii) implement a pre-approval
policy requiring SciClone's compliance officer to pre-approve certain
expenses including payments for, or reimbursement of, third-party gifts,
travel expenses, honoraria and sponsorships of certain third party events.

Financial Update Conference Call Information
SciClone is hosting a
conference call on Friday, April 1 at 8:30 am ET to provide a financial
update. The call will be hosted by Friedhelm Blobel, Ph.D., President and
CEO, and Gary Titus, Senior Vice President and CFO.

LIVE CALL:
866.831.6224 (U.S./Canada)
617.213.8853 (International)

17214706 (Participant code)

REPLAY:
888.286.8010 (U.S./Canada)
617.801.6888 (International)

89310001 (Passcode)
(Replay available from Friday, April 1, 2011 at
11:30 a.m. ET until 11:59 p.m. ET on Friday, April 7, 2011)

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 (NASDAQ: SCLN) is a
revenue-generating, China-centric, specialty pharmaceutical company with
a substantial international business and a product portfolio of novel
therapies for cancer and infectious diseases. The Company is focused on
continuing sales growth and executing a clinical development strategy
with prudently managed costs. ZADAXIN(R) (thymalfasin) is approved in
over 30 countries for the treatment of hepatitis B (HBV), as a vaccine
adjuvant, for the treatment of hepatitis C (HCV), and certain cancers.
SciClone is evaluating SCV-07 in a phase 2b trial to modify the course of
oral mucositis in patients with head and neck cancer. The Company also
has exclusive commercialization and distribution rights in China to a
novel treatment for advanced liver cancer, DC Bead(R), which is already
approved in approximately 40 countries worldwide, including the U.S. and
several countries in Europe. DC Bead is currently under review by
regulatory agencies in China. Additionally, SciClone owns exclusive
commercialization and distribution rights to the anti-nausea drug
ondansetron RapidFilm(R) in China, including Hong Kong and Macau, and
Vietnam. The Company intends to seek regulatory approval for the product,
commonly used to treat and prevent nausea and vomiting caused by
chemotherapy, radiotherapy, and surgery, in these markets. 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 risks and uncertainties include risk and uncertainties relating to:
the course, cost and outcome of regulatory matters, including pricing
decisions by authorities in China; the on-going regulatory investigations
and its independent investigation; the Company's ability to execute on
its goals for ZADAXIN sales to China and on its objectives for revenue in
fiscal 2011; operating an international business; the clinical trial
process, including the regulatory approval and the process of initiating
trials at, and enrolling patients at, clinical sites; the Company's
ability to remediate its identified material weaknesses over financial
control; and changes in its practices and policies which could adversely
affect its ability to generate revenue. SciClone cannot predict the
timing or outcome of its own internal investigation, of the SEC and DOJ
investigations, of the various litigations that have or may be filed
relating to any of those matters, or of its efforts to cooperate with
those investigations, however the Company expects to incur substantial
expenses in connection with the investigations and the results of the
investigations could include fines and further changes in its internal
control or other remediation measures that could adversely affect its
business. 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.

DC Bead is a registered trademark of Biocompatibles UK Limited.

RapidFilm is a registered trademark of Labtec Gesellschaft fuer
technologische Forschung und Entwicklung mbH.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)

Product sales $ 23,616 $ 18,131 $ 85,112 $ 72,411

Cost of product sales 3,246 2,775 12,691 11,960
----------- ----------- ----------- -----------

Gross margin 20,370 15,356 72,421 60,451

Operating expenses:
Research and development 4,715 4,033 12,415 16,531
Sales and marketing 6,010 5,282 22,006 18,805
General and
administrative 5,203 3,445 15,606 12,521
----------- ----------- ----------- -----------
Total operating expenses 15,928 12,760 50,027 47,857
----------- ----------- ----------- -----------

Income from operations 4,442 2,596 22,394 12,594

Interest and investment
income 26 25 105 153
Interest and investment
expense (138) (30) (195) (179)
Other income (expense), net 972 22 953 18
----------- ----------- ----------- -----------
Income before income tax 5,302 2,613 23,257 12,586
Provision for income tax 1,522 167 2,176 641
----------- ----------- ----------- -----------

Net income $ 3,780 $ 2,446 $ 21,081 $ 11,945
=========== =========== =========== ===========

Basic net income per share $ 0.08 $ 0.05 $ 0.44 $ 0.26
Diluted net income per
share $ 0.08 $ 0.05 $ 0.43 $ 0.25

Weighted average shares
used in computing:
Basic net income per
share 47,890 47,208 47,624 46,574
Diluted net income per
share 49,859 48,126 49,414 47,135

UNAUDITED SELECTED BALANCE SHEET DATA
(in thousands)

December 31, December 31,
2010 2009
------------ ------------
Balance Sheet Data:
Cash and cash equivalents $ 53,017 $ 29,687
Short-term investments 3,125 1,717
Accounts receivable 30,671 21,394
Inventories 7,078 10,149
Long-term investments 380 415
Total assets 97,807 66,900
Total current liabilities 12,129 8,528
Long-term borrowing on line of credit 2,500 --
Total Shareholders' equity 82,188 57,393

Corporate Contacts
Gary Titus
Chief Financial Officer
650.358.3456
gtitus@sciclone.com

Ana Kapor
Investors/Media
650.350.4825
akapor@sciclone.com

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