SciClone Pharmaceuticals Announced Share Repurchase Program
October 04, 2011
FOSTER CITY, CA -- (MARKET WIRE) -- SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) announced that its Board of Directors has approved a share repurchase program that authorizes the company to repurchase up to $20 million of its outstanding common stock over the next 24 months. In addition, SciClone reaffirmed its previously announced 2011 financial guidance with the understanding that any cash used to repurchase shares may decrease the year-end cash balance and that a reduction in shares outstanding may increase fourth quarter and full year earnings per share.
"The share repurchase program demonstrates our confidence in the Company's strategic plan and our commitment to delivering shareholder value," commented Friedhelm Blobel, Ph.D., SciClone's President and Chief Executive Officer. "We remain focused on executing our strategy of creating a market-leading specialty pharmaceutical company in China. With our expanded product portfolio and sales and marketing capabilities through our recent NovaMed acquisition, we believe we are well-positioned for long-term growth."
Under the program, purchases may be made from time to time in the open market, in privately negotiated transactions or otherwise, at times and in amounts as the Company deems appropriate. The number of shares to be purchased and the timing of any purchases may be subject to various factors, which may include the price of the common stock, general market conditions, corporate and regulatory requirements, including restrictions in the Company's debt covenants, and alternate investment opportunities. The share repurchase program may be modified or discontinued at any time.
Financial Outlook Update
SciClone is also reaffirming its previous guidance that it expects its 2011 GAAP revenue to be between $133 and $138 million (which excludes NovaMed's revenue prior to the closing of the acquisition on April 18, 2011). The Company is also reaffirming its guidance that its non-GAAP earnings per share for 2011 (which excludes charges and write offs related to the acquisition of NovaMed and employee stock-based compensation), is expected to be between $0.52 and $0.57 per share. Cash, cash equivalents, and short and long term investments are expected to be greater than $55 million at the end of 2011. Any impact of the stock repurchase program (e.g. use of cash and reduced number of shares of common stock outstanding) is not included in these numbers.
SciClone Pharmaceuticals is a revenue-generating, profitable, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio of therapies for oncology, infectious diseases and cardiovascular, urological, respiratory, and central nervous system disorders. SciClone's ZADAXIN® (thymalfasin) is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV), as a vaccine adjuvant, and certain cancers according to the local regulatory approvals. Besides ZADAXIN, SciClone markets nearly 20 mostly partnered products in China, including Depakine®, the most widely prescribed broad-spectrum anti-convulsant in China; Tritace®, an ACE inhibitor for the treatment of hypertension; Stilnox®, a fast-acting hypnotic for the short-term treatment of insomnia (marketed as Ambien® in the US); and Aggrastat®, a recently-launched interventional cardiology product. SciClone is also developing SCV-07 in a phase 2b trial for the delay to onset of oral mucositis in patients with head and neck cancer. SciClone is also pursuing the registration of several other therapeutic products in China. SciClone is headquartered in Foster City, California.