Penny Stock News
Revenues Increase 54% in Second Quarter of 2008; Guidance Updated for the Year 2008
Jul 29, 2008 6:00:00 AM
FOSTER CITY, CA -- (MARKET WIRE) -- 07/29/08 -- SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported results for the second quarter ended June 30, 2008.
"We achieved outstanding revenue growth in our China business in the second quarter. Consolidated sales of ZADAXIN® (thymalfasin) grew by 54% over the second quarter of 2007. We are delighted with our continued success in building a leading pharmaceutical business in this attractive and important market," said Friedhelm Blobel, Ph.D., President and Chief Executive Officer of SciClone. "Later this year, we expect to receive approval for DC Bead™ for the treatment of liver cancer in China. In the third quarter, we plan to report data from our phase 2 SCV-07 trial in Hepatitis C virus (HCV). Most important, in the fourth quarter, we expect to report final data from the European phase 3 trial evaluating thymalfasin in triple therapy to treat patients infected with HCV who have not responded to standard therapy and have very limited treatment options today."
Financial Results
For the second quarter of 2008, product revenues from the sale of ZADAXIN increased by 54% to $13,834,000, compared with product revenues of $8,955,000 for the second quarter of 2007. The increase in product revenues for the second quarter of 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 second quarter of 2008, including related party research and development costs, totaled $4,535,000, compared with $4,712,000 for the second quarter of 2007. The costs this quarter are primarily related to clinical trial expenses for our phase 2 trials for RP101 and SCV-07, the phase 3 clinical trial for HCV, and development plans for a phase 3 trial for melanoma. General and administrative expenses for the second quarter of 2008 were $2,860,000, compared with $2,444,000 for the second quarter of 2007. Sales and marketing expenses for the second quarter of 2008 were $4,192,000, compared with $3,139,000 for the second quarter of 2007. The increase in sales and marketing expenses was primarily due to increases in personnel, promotional activities, and operating expenses related to our expanding sales and marketing efforts.
Net loss for the second quarter of 2008 totaled $319,000, or $0.01 per share, compared with $2,657,000, or $0.06 per share, for the second quarter of 2007.
Cash, cash equivalents and short-term investments totaled $21,885,000 at June 30, 2008, compared with $35,281,000 at December 31, 2007 and $37,481,000 at June 30, 2007. In addition, the Company also had a long-term investment of $1,679,000 at June 30, 2008.
SPIL China Quarterly Financial Data
For the second quarter of 2008, SciClone Pharmaceuticals International China Holding, Ltd., a fully-owned SciClone subsidiary ("SPIL China"), generated product revenues of $13,068,000 from sales of ZADAXIN, a 57% increase compared with $8,325,000 of product revenues for the second quarter of 2007. SPIL China's operating income for the second quarter of 2008 was $6,781,000. The SPIL China results are provided on a GAAP basis and exclude inter-company expenses. Inter-company expenses payable to SciClone from SPIL China were $781,000 in the second quarter.