FOSTER CITY, Calif., July 19, 2016 /PRNewswire/ -- SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today provided an update on part of the strategic review process that was previously announced in February 2016. The Company announced that it is no longer continuing active discussions with potential acquirers which were undertaken as part of its strategic review process, and plans to remain an independent publicly traded company as it continues to execute on its strategic growth plan for its core commercial business.
Jon S. Saxe, Chairman of the Board of Directors of SciClone, stated, "Together with our financial advisor Lazard, we are evaluating a wide range of strategic alternatives to maximize stockholder value. As part of our evaluation, we approached a significant number of potential acquirers of the Company. The Board determined that at this time remaining an independent publicly traded company was the best path forward to maximize long-term stockholder value. Based on what we have learned in this part of the process, the Board intends to continue to review and refine the Company's corporate strategy and evaluate new opportunities."
During this part of the process, the Company did receive interest from a number of prospective acquirers. Those discussions ended without an offer the Board was willing to pursue. None of the bids under discussion reflected a premium to the Company's recent trading price. The Board will continue to evaluate additional strategic opportunities while continuing to focus on growing the Company's business.
Friedhelm Blobel, PhD, SciClone's Chief Executive Officer, commented, "We appreciate the rigor and thoroughness of the Board's evaluation of a potential acquisition of the Company, and believe that the outcome of this process to date is in the best interests of our stockholders and other stakeholders. We believe that SciClone has meaningful growth potential. We intend to continue to execute on our strategies to grow our business. We appreciate the support and dedication of the Company's management team and employees during the strategic review process to date, and look forward to SciClone's continued progress."
Outlook for 2016
SciClone also announced its guidance for full-year 2016 financial results. The Company expects 2016 revenues to be in the range of $158 million to $163 million and expects that non-GAAP earnings per share on a fully diluted basis to be in the range of $0.70 to $0.74 for the year. Second quarter results are scheduled to be released on August 9, 2016.
SciClone Pharmaceuticals is a revenue-generating, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio spanning major therapeutic markets including oncology, infectious diseases and cardiovascular disorders. SciClone's proprietary lead product, ZADAXIN® (thymalfasin), is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV), and certain cancers, and as an immune system enhancer, according to the local regulatory approvals. The Company has successfully in-licensed and commercialized products with the potential to become future market leaders and to drive the Company's long-term growth, including DC Bead®, a novel treatment for liver cancer now approved in China, and several other products in late stage development in China. Through its promotion business with pharmaceutical partners, SciClone also markets multiple branded products in China which are therapeutically differentiated. SciClone is a publicly-held corporation based in Foster City, California, and trades on the NASDAQ Global Select Market under the symbol SCLN. For additional information, please visit www.sciclone.com.
Non-GAAP Financial Measure
SciClone has presented financial guidance relating to non-GAAP earnings per share on a fully diluted basis (EPS) as the Company believes this non-GAAP information is useful for investors because management uses such information internally for its operating, budgeting and financial planning purposes. This non-GAAP measure is not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. SciClone computes this measure by adjusting GAAP EPS to remove the impact of employee stock-based compensation, in-license upfront costs, strategic review expense and expenses related to its settlement with the SEC. The Company excludes these items for purposes of calculating the non-GAAP measure to facilitate financial and operational decision making and as a means to evaluate period-to-period comparisons, and is unable to provide a quantitative reconciliation of its forward-looking estimate of non-GAAP EPS to a forward-looking estimate of GAAP EPS because certain information needed to make a reasonable forward-looking estimate of GAAP EPS for the full fiscal year 2016 is difficult to predict and estimate and is often dependent on future events which may be uncertain or outside of the Company's control.
This press release contains forward-looking statements regarding expected future events and SciClone's financial results and expectations, including, without limitation, statements regarding SciClone's business strategy, growth and progress as a stand-alone US-based, China-focused, publicly traded company, statements regarding the evaluation of other potential opportunities and statements under the caption "Outlook for 2016" set forth above. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risks and uncertainties relating to: the course, cost and outcome of regulatory matters, including future pricing decisions by authorities in China; the dependence of SciClone's sales of ZADAXIN in China; SciClone's ability to execute on its goals in China and on its objectives for earnings and revenue in fiscal 2016; SciClone's ability to implement and maintain controls over its financial reporting; the dependence of its current and future revenue and prospects on third-party license, promotion or distribution agreements, including the need to renew such agreements, enter into similar agreements, or end arrangements that SciClone does not believe are beneficial; operating an international business, including currency exchange fluctuations; uncertainty in the prospects for unapproved products, including uncertainties as to pricing and competition and risks relating to the clinical trial process and related regulatory approval process and the process of initiating trials at, and enrolling patients at, clinical sites. Please also refer to other risks and uncertainties described in SciClone's filings with the SEC. All forward-looking statements are based on information currently available to SciClone and SciClone assumes no obligation to update any such forward-looking statements.
SciClone, SciClone Pharmaceuticals, the SciClone Pharmaceuticals design, the SciClone logo and ZADAXIN are registered trademarks of SciClone Pharmaceuticals, Inc. in the United States and numerous other countries.