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SciClone Q2 Revenue Up; Expects $35M to $36M for 2007

Moderate trading activity for SciClone Pharmaceuticals Inc. (Nasdaq: SCLN) on the eve of its second quarter earnings announcement as the stock closed down 2 cents at $2.14 per share. SciClone reported its second quarter earnings before the opening bell today.

For the second quarter 2007, product revenues from the sale of ZADAXIN (thymalfasin), SciClone’s lead product, increased by 13 percent to $9 million, compared with revenues of $7.9 million for the second quarter 2006. The revenue numbers were in-line with analysts’ estimates of $8.97 million for the second quarter of 2007. The increase in product revenues for the second quarter ended June 30, 2007 is primarily attributable to an increase in the quantity of ZADAXIN sold in China, which accounts for over 90 percent of total ZADAXIN sales.

“During the second quarter, we continued to grow our sales of ZADAXIN to China, hired key regulatory and business development personnel and further expanded our well established sales organization in China, said Friedhelm Blobel, Ph.D., president and CEO of SciClone, in a statement. “Broadening our capabilities while adding sales representatives to our strong sales and marketing base are key parts of our strategy to build a leading pharmaceutical business in this rapidly growing market.”

Net loss for the second quarter 2007 totaled $2.7 million, or 6 cents per share, compared with net income of $6 million, or 13 cents per share, for the second quarter 2006. Even though the company recorded a loss for the quarter, the results still exceeded analysts’ expectations for a loss of 8 cents per share.

“We are making significant progress in advancing our product development portfolio for the U.S. and European markets. Most notably we reported that the primary endpoint in a large phase 2 study of thymalfasin for malignant melanoma was achieved and we acquired the U.S. and Canadian rights to RP101, a clinical compound for the treatment of pancreatic cancer,” said Dr. Blobel in a statement.

Cash, cash equivalents and short-term investments totaled $37.5 million at June 30, 2007.

For the full year 2007, SciClone is maintaining its current guidance. SciClone maintains its revenue estimate of approximately $35 million to $36 million, which is slightly below analysts’ estimates of $36.12 million. Also, SciClone is maintaining its estimates for net loss of approximately $13 million, or 28 cents per share, which misses analysts’ estimates for a loss of 24 cents per share, for the full year 2007.

SciClone is a biopharmaceutical company engaged in the development of therapeutics to treat life-threatening diseases. SciClone’s lead product ZADAXIN is currently being evaluated in late-stage clinical trials for the treatment of malignant melanoma and hepatitis C. ZADAXIN is approved for sale in select markets internationally, most notably in China where SciClone has an established sales and marketing operation.

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