SciClone Reports Second Quarter 2016 Financial Results

FOSTER CITY, Calif., Aug. 9, 2016 /PRNewswire/ -- SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported financial results for the quarter ended June 30, 2016.

SciClone Pharmaceuticals, Inc. Logo.

  • Revenues: In the second quarter of 2016, SciClone reported revenues of $39.0 million, compared to $37.9 million for the same period in 2015.
  • GAAP Diluted EPS: In the second quarter of 2016, SciClone reported GAAP diluted net earnings per share of $0.12, compared to GAAP diluted net loss per share of $0.08 for the same period in 2015.
  • Non-GAAP Diluted EPS: In the second quarter of 2016, SciClone reported non-GAAP diluted net earnings per share of $0.20, compared to $0.26 for the same period in 2015.

Revenues in the second quarter of 2016 were $39.0 million, a $1.1 million or 3% increase, compared to $37.9 million for the same period in 2015. ZADAXIN® revenues were $36.5 million in the second quarter of 2016, a $1.0 million or 3% increase, compared to $35.5 million for the same period in 2015. Promotion services revenues were $1.1 million for the second quarter of 2016, a $0.4 million or 51% increase, compared to $0.7 million in the same period in 2015. For the six months ended June 30, 2016, revenues were $75.5 million, compared to $71.5 million for the same period last year.

On a GAAP basis, SciClone reported net income in the second quarter of 2016 of $6.3 million, or $0.13 and $0.12 per share on a basic and diluted basis, respectively, compared to a net loss of $4.0 million, or $0.08 per share on both a basic and diluted basis for the same period in 2015. SciClone's net income for the six months ended June 30, 2016 was $14.2 million, compared with net income of $4.9 million for the same period in the prior year, or $0.29 and $0.27 per share on a basic and diluted basis, respectively, for the six months ended June 30, 2016, compared with $0.10 and $0.09 per share on a basic and diluted basis, respectively, for the same period in 2015.

SciClone's non-GAAP net income in the second quarter of 2016 was $10.7 million, or $0.21 and $0.20 per share on a basic and diluted basis, respectively, compared with non-GAAP net income of $13.5 million, or $0.27 and $0.26 per share on a basic and diluted basis, respectively, for the same period last year. SciClone's non-GAAP net income for the six months ended June 30, 2016 was $20.4 million, compared with non-GAAP net income of $23.3 million for the same period in the prior year, or $0.41 and $0.39 per share on a basic and diluted basis, respectively, for the six months ended June 30, 2016, compared with non-GAAP net income of $0.47 and $0.44 on a basic and diluted basis, respectively, for the same period in 2015.

Friedhelm Blobel, PhD, SciClone's Chief Executive Officer commented: "We are pleased with our performance in the second quarter and year to date, which is in line with our expectations and reflects the value and continued growth potential of our core business, led by ZADAXIN. In 2016, we expect our growth to continue at a rate that reflects both the challenges and opportunities in the evolving China pharmaceuticals market, including provincial pressures on drug pricing which, though slower to be implemented than anticipated, are likely to affect the whole sector over time. We have confidence in our ability to implement innovative commercial strategies designed to address and offset these challenges, and to continue to grow our business. In addition, we continue to believe that the overall reform movement in China represents opportunities for SciClone to grow our marketed product portfolio and to advance our development pipeline of high quality, differentiated medicines.

As previously announced, our Board is no longer continuing active discussions with potential acquirers, which were undertaken as part of our strategic review process, and we plan to remain an independent publicly traded company at this time as we continue to execute on our strategic growth plan for our core commercial business. We are confident that the outcome of this process to date is in the best interests of our stockholders and other stakeholders. Given our company's meaningful growth potential, we believe that we can best take advantages of the opportunities, and meet the challenges, of the China pharma market by continuing to execute on our strategies to grow our business."

For the second quarter of 2016, sales and marketing (S&M) expenses were $14.4 million, compared with $13.3 million for the same period in 2015. The increase in S&M for the second quarter of 2016, compared to the same period in 2015, primarily related to increases in sales and marketing efforts for ZADAXIN. For the six months ended June 30, 2016, S&M expenses were $26.8 million, compared with $24.7 million, for the same period last year.

For the second quarter of 2016, research and development (R&D) expenses were $4.8 million, compared with $6.6 million of R&D expenses for the same period of 2015. For the second quarter of 2016 and 2015, we recorded $2.0 million and $5.5 million, respectively, related to in-license arrangements with certain licensees and $2.8 million and $1.1 million, respectively, related to R&D expenses for clinical and preclinical R&D activities with certain licensees. For the six months ended June 30, 2016, R&D expenses were $6.2 million, compared with $7.7 million, for the same period last year.

For the second quarter of 2016, general and administrative (G&A) expenses were $8.1 million, compared with $6.4 million for the same period in 2015. G&A was higher for the second quarter of 2016, compared to the same period of 2015, related to higher professional costs primarily in connection with the Company's strategic review. In addition, during the second quarter of 2015, the Company recorded a $0.4 million credit to bad debt expense for collection of accounts receivable from a particular customer that had been fully reserved prior to 2015, that did not recur in the corresponding 2016 period. For the six months ended June 30, 2016, G&A expenses were $15.6 million, compared with $13.5 million, for the same period last year.

For the second quarter of 2016, SciClone's income tax benefit was $0.4 million, compared with an income tax benefit of $0.5 million for the same period in 2015. For the six months ended June 30, 2016, tax provision expense was $1.6 million, compared with $24,000, for the same period last year.

As of June 30, 2016, cash and cash equivalents totaled $117.6 million, compared to $101.4 million as of December 31, 2015, excluding the $12.8 million of restricted cash held in escrow as of December 31, 2015 for the SEC settlement which was released and paid in February 2016.

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