To: John Rowe who wrote (334 ) 11/11/1999 11:10:00 AM From: Skywatcher Read Replies (1) | Respond to of 1137
SciClone Strengthens Capital Structure...SHOWING CONFIDENCE HERE! SAN MATEO, Calif., Nov. 11 /PRNewswire/ -- SciClone Pharmaceuticals (Nasdaq: SCLN - news) announced that the Company has elected to cancel its $32 million stand-by equity line, which was secured in June 1998 but never used. After reviewing its current cash balance and likely capital requirements prior to profitable operations anticipated next year, the Company determined that the equity line was no longer needed as a reserve. ''We want to clarify our commitment to align all of our shareholders' interests by sticking to traditionally structured and priced financing vehicles and have decided to simplify our capital structure by closing our equity line,'' said Donald R. Sellers, SciClone's President and Chief Executive Officer. ''The absence of the potential dilutive effect of a financing under the terms of the equity line will preserve the leverage of our current shareholders. We recently raised $6 million from major institutional investors and are experiencing renewed interest from institutions directed toward longer term relationships. Additionally, our continuing revenue growth has led to a corresponding reduction in cash burn.'' For the third quarter of 1999, SciClone's net loss was reduced to $797,000 on record product sales of $2,513,000, the Company's seventh consecutive quarter of sales growth greater than 20 percent. During the quarter, the Company raised $6 million in equity financing from investors including Brown Simpson and The New York Life Insurance Company. SciClone's cash balance at the end of the quarter was $4.2 million. Sellers noted that the Company's revenue growth rate remains on pace for profitable operations by the end of the fourth quarter of the year 2000. SciClone's lead drug, ZADAXIN, boosts the body's immune system, without any serious side effects, in the fight against life-threatening diseases such as hepatitis B, hepatitis C, HIV/AIDS and cancer. ZADAXIN already has been approved in 16 countries, principally for the treatment of hepatitis B and hepatitis C. SciClone has filed for ZADAXIN marketing approval in 19 additional countries. CHRIS