Aufan mentioned this gem to me and after doing a little DD it looks like a good buy. I hate to get in after hours so high over the previous close but looks like a decent company. I don't think shares will be available for under $4 tomorrow (or for a very long time) so hopefully the $4.50 range where I bought will turn out ok. If not, oh well, I'll sell for a loss, won't be the first time and won't be the last.
Short interest
Aufan, you are going to love this! On June 15th, 2009 there were 282,495 shares short....On June 30th, 2009 that number jumped to 405,027 shares short....Now check this out....On July 15th, 2009 there were 1,747,375 shares short
That is an INSANE increase in 2 weeks and my guess is as of today's close (August 4th) there are over 2 million shorts about to be tossed into the frying pan
See for yourself:
Short Interest - SciClone Pharmaceuticals, Inc. (SCLN) - NASDAQ.com
Company Overview
SciClone Pharmaceuticals, Inc. (SciClone ) is a biopharmaceutical company engaged in the development and commercialization of therapeutics to treat life-threatening diseases. ZADAXIN, the Company's brand of thymalfasin and its primary product, is sold in over 30 countries for the treatment of the hepatitis B virus (HBV) and the hepatitis C virus (HCV), certain cancers and as a vaccine adjuvant. The Company develops various pipelines of phase II drug candidates, including RP101 for the treatment of pancreatic cancer and SCV-07 for the treatment of HCV and for oral mucositis. Its DC Bead product is awaiting approval in China, for the treatment of liver cancer. The Company manufactures ZADAXIN, RP101 and SCV-07 through third-party contract manufacturers, and it conducts its research and development efforts principally through arrangements with clinical research sites, contract research organizations and universities.
Raising guidance:
SciClone Pharmaceuticals Inc. (NASDAQ: SCLN) said it expects 2009 earnings of $0.10 to $0.14 per share on revenue of $69.0 million to $71.0 million. The company's previous guidance was earnings of $0.05 to $0.07 per share on revenue of $65.0 million to $67.0 million and the current consensus earnings estimate is $0.06 per share on revenue of $65.9 million for the year ending December 31, 2009.
SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today reported financial results for the second quarter of 2009. Revenues for the quarter grew 59% to $22.0 million compared with the same period in 2008. SciClone reported net income of $7.3 million or $0.16 per share on a basic and diluted basis, compared with a net loss of $0.3 million, or $0.01 per share for the same period of last year.
"We are very pleased with the exceptional results in this quarter, which allow us to increase our revenue and earnings guidance for the full year. These robust financial results, combined with our cost-containing clinical development strategy and focused expense management, are a result of the execution of our corporate strategy. The recent licensing of the oral anti-nausea product, ondansetron RapidFilm(TM), shows further progress with our corporate strategy to broaden our product pipeline for China and Vietnam, where we see strong growth opportunities," said Friedhelm Blobel, Ph.D., SciClone's President and Chief Executive Officer. "Importantly, we are also preparing for the opportunity to develop ZADAXIN(R) in certain countries as an enhancer of novel H1N1 flu vaccines for immune-compromised populations. This plan entails many uncertainties, therefore we have not reflected additional sales or earnings in our updated 2009 guidance but we are building inventories to address the potential increased demand associated with this difficult healthcare situation."
Financial Outlook for 2009
SciClone is updating its financial guidance for 2009. The Company anticipates full year 2009 revenues of between $69 and $71 million, an increase of approximately 28% to 31% over 2008. SciClone anticipates earnings per share for the full year 2009 to be between $0.10 and $0.14. Although revenues were higher than expected in the second quarter of 2009, largely due to higher demand in China for ZADAXIN related to H1N1 flu virus concerns, for the rest of the year the Company expects its quarterly sales growth to return to levels more consistent with its established business. SciClone expects increased R&D expenses in the second half of 2009 associated with H1N1 animal and, potentially, human studies; timing of other clinical development expenses; and costs of in-licensing products for China. SciClone's cash, cash equivalents, investments and restricted investments at December 31, 2009, are projected to be between $20 and $22 million.
Financial Results
Research and development expenses for the second quarter of 2009 totaled $3.7 million, compared with $4.5 million for the same period last year. The decrease was primarily related to the timing of the clinical trial expenses during the second quarter. For the six months ended June 30, 2009, research and development expenses were $8.7 million, compared with $12.1 million for the same period last year.
Sales and marketing expenses for the second quarter of 2009 were $4.9 million, compared with $4.2 million for the same period last year. The increase in sales and marketing expenses in the second quarter of 2009 was primarily due to increases in marketing activities related to expanding sales efforts for SciClone's lead product ZADAXIN in China. For the six months ended June 30, 2009, sales and marketing expenses were $9.2 million, compared with $8.1 million for the same period last year.
General and administrative expenses for the second quarter of 2009 decreased to $2.6 million, compared with $2.9 million for the same period last year. The decrease in expenses was primarily due to lower employee-related costs. For the six months ended June 30, 2009, general and administrative expenses were $5.7 million, compared with $5.9 million for the same period last year.
Net income for the second quarter of 2009 totaled $7.3 million, or $0.16 per share, compared with a net loss of $0.3 million, or $0.01 per share for the same period last year. For the six months ended June 30, 2009, net income was $7.4 million, or $0.16 per share, compared with a net loss of $6.0 million or $0.13 per share for the same period last year.
The second quarter 2009 expenses include $0.5 million of non-cash stock-based compensation charges, which were comparable to $0.5 million for the same period last year. Excluding non-cash stock-based compensation charges, on a pro-forma basis, net income was $7.9 million or $0.17 per share on a basic and diluted basis, compared with a net income of $0.2 million or $0.00 per share for the same period last year. The year to date 2009 expenses include $0.9 million of non-cash stock-based compensation charges, which were comparable to $1.0 million for the same period last year. Excluding non-cash stock-based compensation charges, on a pro-forma basis, net income was $8.3 million, or $0.18 per share on a basic and diluted basis, compared with a net loss of $5.0 million or $0.11 per share for the same period last year.
Cash, cash equivalents, investments and restricted investments totaled $24.0 million at June 30, 2009, compared with $29.7 million at December 31, 2008. The decrease in cash for the six months ended June 30, 2009 is mainly related to working capital changes associated with its growing international business and its ongoing clinical development projects. SciClone has available a $6 million line of credit with Silicon Valley Bank, which may be used to provide additional working capital to support the Company's continuing growth.
Pipeline Updates
Together with its partner Sigma-Tau, SciClone is engaged in preclinical work to confirm the potential of ZADAXIN to enhance the immune response to novel pandemic flu H1N1 vaccines. ZADAXIN is approved in Italy and twelve other countries for influenza vaccine enhancement in immunocompromised patients or as an immune stimulant.
Animal studies are currently under way to assess the possibility that one or two injections would suffice. If successful, a small, brief clinical study in a targeted population would follow. SciClone is building inventories to address the potential increased demand associated with this difficult healthcare situation.
In July 2009, SciClone entered into an exclusive licensing agreement with APR Applied Pharma Research S.A. ("APR"), granting SciClone the commercialization rights for APR's anti-nausea drug ondansetron RapidFilm(TM) for China and Vietnam. Ondansetron RapidFilm is an innovative oral thin film formulation of ondansetron, a serotonin 5-HT3 receptor antagonist commonly used to treat and prevent nausea and vomiting caused by chemotherapy, radiotherapy, and surgery. Based on an expected European approval and subsequent Chinese bioequivalency study, SciClone plans to file for product registration with the State Food and Drug Administration (SFDA) of China in 2010. SciClone believes it will obtain regulatory approval in 2011.
SciClone has recently learned from SFDA regarding its regulatory application of DC BeadTM, a product for the treatment of liver cancer, that in order for the agency to complete its review, SciClone must conduct a small local trial to supplement data obtained from a previous study performed in Hong Kong by Ronnie Poon, MD. If the trial, which is planned to commence this quarter, is positive, the Company expects to receive regulatory approval for DC Bead in the second half of 2010. DC Bead is approved in 40 countries worldwide, including the US (as LC Bead(TM)) and Europe.
Upcoming Milestones
SciClone expects to achieve the following significant milestones:
-- Achieve strong revenue growth and full year profitability in 2009;
-- Complete enrollment in the second half of 2009 of the phase 2 trial of
SCV-07 for the delay of onset of severe oral mucositis in patients
receiving chemoradiation therapy for the treatment of cancer of the head
and neck;
-- Complete preclinical studies in the second half of 2009 evaluating the
treatment regimen for ZADAXIN as an enhancer of H1N1 pandemic flu vaccine;
-- Initiate in the second half of 2009 the phase 2 trial of SCV-07 for
HCV;
-- Report initial results in the first half of 2010 from the phase 2
trial of RP101 in pancreatic cancer;
-- Report initial results in the first half of 2010 from the phase 2
trial of SCV-07 in severe oral mucositis;
-- Establish a partnership for the Company's phase 3-ready thymalfasin
product candidate in stage IV melanoma.
Long-term 15 year MONTHLY chart (the resistance line that held for 10 years will most likely be broken tomorrow):
SCLN - SciClone Pharmaceuticals, Inc. (NASDAQ Stock)
Linear Mode
