SciClone Reports Second Quarter Results
Monday July 28, 6:31 am ET
Record ZADAXIN Sales of $16.2 Million and Net Income of $5.1
Million
SAN MATEO, Calif.--(BUSINESS WIRE)--July 28, 2003--SciClone Pharmaceuticals, Inc.
(Nasdaq:SCLN - News) today reported net income of $5,124,000, or $0.13 per fully
diluted share, for the second quarter ended June 30, 2003. Revenues from sales of
ZADAXIN®, the company's lead immune system enhancer drug, reached a record
$16,207,000, driven primarily by a significant unanticipated surge in orders related to the
SARS epidemic in China last April.
Commenting on the results, Donald
R. Sellers, SciClone's president and
chief executive officer, said, "While
our primary focus continues to be on
managing the progress of our two
U.S. phase 3 hepatitis C clinical
trials, I am very proud of how our
employees, suppliers, and importers
responded quickly and responsibly to
the SARS related short term increase
in demand for ZADAXIN in China and
our ability to make similar
adjustments as ZADAXIN market
conditions normalize."
Sales reached $16,207,000 for the
second quarter of 2003, a 300%
increase over the $4,048,000
reported for the second quarter 2002 and a 224% increase over the $5,000,000
reported for the first quarter of 2003. Net income of $5,124,000, or $0.13 per fully diluted
share, for the second quarter 2003 compares to a net loss of $3,345,000, or $0.10 per
share, for the second quarter of 2002, and a net loss of $2,862,000, or $.08 per share,
for the first quarter of 2003. In addition, the company recognized $224,000 as contract
revenue from its European marketing partner, Sigma-Tau in each of these periods.
Richard A. Waldron, SciClone's chief financial officer, explained, "Compared to the first
quarter of 2003, product sales increased by $11,207,000, gross margin increased by
$9,292,000, and net income reached 31% of net revenue. These results were achieved
even with the budgeted increase in research and development expenses associated with
our two 500 patient phase 3 hepatitis C trials and finalizing the data from our Japanese
phase 3 hepatitis B trial. In addition, with accelerated collections of receivables in the
second quarter, the $1,382,000 increase in accounts receivable was low relative to the
increase in sales. These factors contributed to an $8,787,000 increase in our cash
position during the second quarter and to our continued ability to fund our ongoing U.S.
phase 3 clinical trials. As the SARS epidemic has become more contained, we expect
sales and other operating results in the third and in future quarters to be more consistent
with sales patterns in prior quarters."
For the six months ended June 30, 2003, revenues from ZADAXIN sales totaled
$21,207,000, a 165% increase over the $7,996,000 reported for the same period of the
prior year. Net income for the six months ended June 30, 2003 was $2,262,000, or $0.06
per fully diluted share, versus a net loss of $5,748,000, or $0.17 per share, during the
same period of the prior year.
Positive operating cash flow of $5,602,000 for the second quarter of 2003 compared
favorably to cash used in operations of $5,490,000 in the first quarter of 2003. Cash,
cash equivalents, and short-term investments totaled $26,372,000 at June 30, 2003,
compared to $17,585,000 at March 31, 2003 and $24,400,000 at June 30, 2002. Most of
the increase from March 31, 2003 was attributable to the cash flow from operations and
the receipt of $2.5 million from institutional investors exercising warrants to purchase
common stock.
CC |
