SciClone Pharmaceuticals Inc. (SCLN, Financial) filed Quarterly Report for the period ended 2012-03-31.
Sciclone Pharma has a market cap of $354.6 million; its shares were traded at around $5.9 with a P/E ratio of 11.4 and P/S ratio of 2.7.
Total China revenues were $38.5 million, or 98% of sales for the three-month period ended March 31, 2012, compared to $20.9 million, or 96% of sales for the corresponding period in 2011.
For the three-month period ended March 31, 2012, sales to two importing or distributor agents in China accounted for approximately 74% and 18% of our product sales. For the three-month period ended March 31, 2011, sales to two importing or distributor agents in China accounted for approximately 81% and 15% of our product sales. Our experience with our largest importers or distributors has been good and we anticipate that we will continue to sell a majority of our product to them.
Cost of product sales were $4.9 million for the three-month period ended March 31, 2012, compared to $3.1 million for the same period in the prior year. The increase of $1.8 million, or 59%, and for the three-month period ended March 31, 2012 compared to the same period in the prior year was attributable to higher ZADAXIN sales and the addition of NovaMed cost of product sales as a result of the acquisition of NovaMed. ZADAXIN cost of sales were $4.1 million for the three-month period ended March 31, 2012, compared to $3.1 million for the corresponding period in 2011. Gross margin for ZADAXIN was 86.1% and 85.7% for the three months ended March 31, 2012 and 2011, respectively. The increase in gross margin for ZADAXIN for the three-month period ended March 31, 2012, compared to the three-month period ended March 31, 2011, was due primarily to lower per vial production costs mainly as a result of manufacturing volume efficiencies.
Sales and marketing expenses for the three months ended March 31, 2012 increased by $12.4 million, or 237%, compared to the same period in 2011. Increases of $8.6 million, for the three-month period ended March 31, 2012, were attributable to NovaMed operations as a result of the acquisition of NovaMed and its sales force of over 460 individuals. The remaining increases of $3.8 million for the three-month period ended March 31, 2012, related to increased growth in the ZADAXIN sales force in China of over 100 additional sales individuals, and further market penetration in China resulting in increased sales and marketing costs for compensation and benefits including sales incentives, rent, travel, medical training, and business taxes. We expect sales and marketing expenses to be higher in 2012 compared to 2011 due to increased sales efforts of ZADAXIN, primarily in China, and the addition of NovaMed sales and marketing expenses as a result of our acquisition of NovaMed in April 2011.
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Sciclone Pharma has a market cap of $354.6 million; its shares were traded at around $5.9 with a P/E ratio of 11.4 and P/S ratio of 2.7.
Highlight of Business Operations:
Product sales were $31.3 million for the three-month period ended March 31, 2012, compared to $21.7 million for the corresponding period in 2011. The increase of $9.6 million, or 44%, for the three-months ended March 31, 2012, compared to the same period in the prior year, was primarily attributable to increased sales of ZADAXIN and due to the addition of NovaMed product sales as a result of the acquisition of NovaMed. ZADAXIN sales were $29.7 million the three-month period ended March 31, 2012, compared to $21.7 million for the corresponding period of 2011. Our overall ZADAXIN revenue growth was attributable to an increase in the quantity of ZADAXIN sold primarily due to further market penetration in China.Total China revenues were $38.5 million, or 98% of sales for the three-month period ended March 31, 2012, compared to $20.9 million, or 96% of sales for the corresponding period in 2011.
For the three-month period ended March 31, 2012, sales to two importing or distributor agents in China accounted for approximately 74% and 18% of our product sales. For the three-month period ended March 31, 2011, sales to two importing or distributor agents in China accounted for approximately 81% and 15% of our product sales. Our experience with our largest importers or distributors has been good and we anticipate that we will continue to sell a majority of our product to them.
Cost of product sales were $4.9 million for the three-month period ended March 31, 2012, compared to $3.1 million for the same period in the prior year. The increase of $1.8 million, or 59%, and for the three-month period ended March 31, 2012 compared to the same period in the prior year was attributable to higher ZADAXIN sales and the addition of NovaMed cost of product sales as a result of the acquisition of NovaMed. ZADAXIN cost of sales were $4.1 million for the three-month period ended March 31, 2012, compared to $3.1 million for the corresponding period in 2011. Gross margin for ZADAXIN was 86.1% and 85.7% for the three months ended March 31, 2012 and 2011, respectively. The increase in gross margin for ZADAXIN for the three-month period ended March 31, 2012, compared to the three-month period ended March 31, 2011, was due primarily to lower per vial production costs mainly as a result of manufacturing volume efficiencies.
Sales and marketing expenses for the three months ended March 31, 2012 increased by $12.4 million, or 237%, compared to the same period in 2011. Increases of $8.6 million, for the three-month period ended March 31, 2012, were attributable to NovaMed operations as a result of the acquisition of NovaMed and its sales force of over 460 individuals. The remaining increases of $3.8 million for the three-month period ended March 31, 2012, related to increased growth in the ZADAXIN sales force in China of over 100 additional sales individuals, and further market penetration in China resulting in increased sales and marketing costs for compensation and benefits including sales incentives, rent, travel, medical training, and business taxes. We expect sales and marketing expenses to be higher in 2012 compared to 2011 due to increased sales efforts of ZADAXIN, primarily in China, and the addition of NovaMed sales and marketing expenses as a result of our acquisition of NovaMed in April 2011.
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