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US-Based, China-Focused, Specialty Pharmaceutical Company 2013 Annual Report

2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

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Page 1: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

US-Based,

China-Focused,

Specialty

Pharmaceutical

Company

2013 Annual Report

Page 2: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

SciClone Pharmaceuticals is a China-focused,

specialty pharmaceutical company with a substantial

commercial business and a product portfolio of therapies for

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), as a

vaccine adjuvant, and certain cancers, according to the

local regulatory approvals. Through its promotion business

with pharmaceutical partners, SciClone markets multiple

products in China which are therapeutically differentiated.

The Company has successfully in-licensed products with

the potential to become future market leaders and to drive

the Company’s long-term growth. 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.

Page 3: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

We are proud of the team we have assembled in China and in the US, and of our ability to continue to attract high-quality talent. Today, we have the right team in place to help us to grow and expand our business, and continue to operate effectively and in compliance with all regulatory and legal requirements.

Along with growth come challenges. The China government’s very public focus on anti-corruption had a significant

effect on the overall market in 2013. While the market appears to be rebounding, there are indications that we are

seeing a “new normal” taking shape in the market, as some multi-national corporations re-evaluate how they want to

approach this market. They have to maintain a presence in order to leverage growth opportunities, but they could also

tailor their portfolios and divest some products, or reduce their sales presence, all of which could open up interesting

opportunities for SciClone, either for in-licensing or for promotion deals.

While pricing and generic competition continue to be challenges, we believe that the growth opportunities in this

market outweigh those, for the foreseeable future. ZADAXIN is a very strong brand and our relationships throughout

our supply chain and with our distributors are strong. We believe that by working together with them, we can address

potential challenges.

Looking Forward With our strong cash position, we have the resources to pursue strategies, including additional

partnering, that can expand our portfolio of differentiated, high-value products and drive our long-term revenue and

profitability growth. We plan to continue our share repurchase program, which we strongly believe is a value-creating

strategy for our stockholders.

Having come through a challenging 2013, in which we dealt with internal issues as well as externally with

uncertainties in the China pharma market, our outlook for 2014 and for our overall long-term growth is positive. I am

confident that we have the right team in place to help us to grow and expand our business, and continue to operate

effectively and in compliance with all regulatory and legal requirements. We believe that 2014 has the potential to be

a high-performance year for SciClone, and that we are poised to execute well on our objectives.

SciClone’s Board of Directors and management team join me in expressing our appreciation to all our stockholders

for your continued support and interest in our Company.

Friedhelm Blobel, Ph.D.

President and Chief Executive Officer

April 2014

Teamwork

Customer Focused

Accountability

Respect

Integrity Teamwork

Customer Focused

Accountability

Respect

Integrity

Key Marketed Products

Development Products

Embolic drug-eluting bead for targeted delivery of cancer chemo; licensed from BTG/Biocompatibles

Recombinant peptide fragment of neuregulin-1 for chronic heart failure; licensed from Zensun

Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance

Lipid emulsion-based formulation of prostaglandin E1 for peripheral arterial disease (PAD)licensed from Taiwan Liposome Company

Oral film formulation of ondansetron, serotonin 5-HT3 receptor agonist used as anti-emetic agent for chemotherapy-induced nausea and vomiting; licensed from APR Oncology

DC Bead TM

Neucardin TM

Loramyc

ProFlow TM

RapidFilm®

Marketed Products

HBV, HCV, Cancer Adjuvant

Oncology

Cancer Supportive Care

Oncology

Oncology

Oncology

Oncology

Cardiovascular

Zadaxin

Holoxan

Mesna

Endoxan

Methotrexate

Farlutal

Estracyt

Aggrastat

SciClone

Baxter

Pfizer

Cardiome

Teamwork

Customer Focused

Accountability

Respect

Integrity

97546_Txt_v2.indd 1-2 4/18/14 1:03 PM

Page 4: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

Dear Stockholders

2010–2014 Revenue and Non-GAAP EPS Trend*

Zadaxin Revenue Growth

Letter to Stockholders

We are pleased to report that our progress in our core business in the second half of 2013 was strong, well outpacing

the first half of the year. The major issues that slowed our progress at the end of 2012 and first half of 2013 have

been fully addressed, setting the stage for re-establishing our Company’s growth trajectory in 2014.

We believe that a key growth driver for 2014 will continue to be the strong market demand for ZADAXIN® in the

current indications for which it is approved, as well as potential new indications, supported by enhanced and more

targeted sales and marketing strategies. We are pleased to report strong demand for ZADAXIN in the second half of

2013, and believe we are already off to a promising start in 2014.

Our key strategy is expanding our presence in major Tier 1 cities in China, such as Beijing, as well as growing our

presence in Tier 2 and Tier 3 cities. The potential for greater penetration into new target hospitals in these geographies

is very high.

An important growth opportunity is emerging in the hepatitis B market, where ZADAXIN is approved for use. The

prevalence of HBV in China is still quite high at approximately 7%, and the effectiveness of approved antivirals

is diminishing because of resistance. We have seen growing market uptake as ZADAXIN is increasingly used in

combination with approved antiviral therapy, and we intend to continue to market ZADAXIN actively in this indication.

Another growth opportunity beginning to take shape for ZADAXIN is in the area of sepsis. Sepsis remains a large,

growing and underserved market in China. Following the publication in 2013 of the results of a large trial involving

more than 350 patients that showed promising results for use of ZADAXIN in sepsis, the lead principal investigator,

who is a well-known key opinion leader in the China market, has increased direct communications with physicians

about ZADAXIN’s potential impact on outcomes. We believe that this trend can build over time. We plan to continue

to work toward the inclusion of thymalfasin into treatment guidelines.

In terms of our collaborations, we look forward to continuing our promotion agreements with Baxter and Pfizer, and

plan to continue to seek additional, well-structured in-licensing and product promotion partnerships in order to expand

our marketed product portfolio and contribute to our profitability.

Going Wider and Deeper We believe that our “wider and deeper” strategy is the right approach. For the “wider”

strategy, we are expanding our coverage in Tier 2 and Tier 3 cities in high-growth provinces, such as Shandong, Fujian

and others outside of the historically largest five provinces, which are Beijing, Shanghai, Guangdong, Zhejiang, and

Jiangsu. As part of our “deeper” strategy, we intend to further penetrate the larger hospitals in Tier 1 and especially

Tier 2 cities. We are looking forward to the pending Beijing tender, which could further open up a sizeable market

for our products.

A key strategy has been the recruitment of Medical Affairs professionals to augment our communications with

physicians, particularly at large, sophisticated hospitals. These medically trained experts are able to conduct high-

level, peer-to-peer dialogues with physicians. Their presence, especially when communicating about ZADAXIN, can

significantly enhance physician awareness and understanding of the important differences between our product and

low-quality generics, which then enables our sales professionals to operate more effectively. We plan to build these

capabilities further, especially in the cardiovascular arena.

Stronger, More Focused Organization Today, I am proud of the team we have assembled in China and in the US,

and of our ability to continue to attract high-quality talent. We believe that the significant improvements we have made

in strengthening the China management team are having a positive impact. We also believe that the enhancements

we have made in our business practices and accounting controls, and in intensifying our focus on continuously

improving company-wide compliance, will continue to positively affect our business and build our reputation in the

China pharma market and in the global investment community.

Our sales and marketing team has adjusted well to the restructuring we implemented at the end of 2013. Our team

remains organized into three business units. The ZADAXIN business unit, as our core business, has been expanded to

support further penetration into large hospitals in Tier 1, 2 and 3 cities. The oncology business unit remains stable and

focused on the top 300 hospitals. The cardiovascular business unit is focusing on Aggrastat® and preparing for new

business opportunities in the next two to three years, including Neucardin™ and ProFlow™.

Well-Positioned for Growth We continue to see significant growth prospects for the China pharma market. China

is both increasing access and coverage for healthcare services and products, and at the same time, controlling the

rate of growth in healthcare spending. Today, it is estimated that 280-300 million people have been brought into the

healthcare system, with estimates that this number will grow to 700-800 million in the next few years, as healthcare

reform reaches more deeply into secondary and tertiary markets. That is still only two thirds of the 1.3 billion people

in China who need access.

The China pharmaceuticals market continues to grow at a rate that far exceeds established Western markets.

Estimates of that future growth rate for 2014 and beyond are in the 15-20% compounded annual growth rate range

for the next few years. Analysts continue to predict that by 2020, China will become the world’s second largest

pharmaceutical market, growing to potentially $220-$230 billion by that time.

$85

$133

$156

$127 $133

$0.50

$0.62 $0.67

$0.43 $0.44

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$0MM

$20MM

$40MM

$60MM

$80MM

$100MM

$120MM

$140MM

$160MM

$180MM

2010 2011 2012 2013 2014 Guidance

EP

S

Rev

enu

e

Revenue Non-GAAP Basic EPS

$19 $22

$25

$31

$26

$29 $29

$33

$0MM

$5MM

$10MM

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Actual Projected

Y/Y growth >20%

$85

$133

$156

$127 $133

$0.50

$0.62 $0.67

$0.43 $0.44

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$0MM

$20MM

$40MM

$60MM

$80MM

$100MM

$120MM

$140MM

$160MM

$180MM

2010 2011 2012 2013 2014 Guidance

EP

S

Rev

enu

e

Revenue Non-GAAP Basic EPS

$19 $22

$25

$31

$26

$29 $29

$33

$0MM

$5MM

$10MM

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Actual Projected

Y/Y growth >20%

Teamwork

Customer Focused

Accountability

Respect

Integrity

Teamwork

Customer Focused

Accountability

Respect

Integrity

*Non-GAAP financial measures exclude employee stock-based compensation, in-licenses upfront costs, restructuring charges, estimated SEC and DOJ investigation loss, change in fair value of contingent consideration, amortization of acquired intangible assets, intangible assets impairment and net tax benefit related to NovaMed deferred tax assets and liabilities. See our press release and our Form 8-K filed with the SEC on March 12, 2014 for GAAP information and a reconciliation of GAAP to non-GAAP earnings per share.

97546_Txt_v2.indd 3-4 4/18/14 1:03 PM

Page 5: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

Dear Stockholders

2010–2014 Revenue and Non-GAAP EPS Trend*

Zadaxin Revenue Growth

Letter to Stockholders

We are pleased to report that our progress in our core business in the second half of 2013 was strong, well outpacing

the first half of the year. The major issues that slowed our progress at the end of 2012 and first half of 2013 have

been fully addressed, setting the stage for re-establishing our Company’s growth trajectory in 2014.

We believe that a key growth driver for 2014 will continue to be the strong market demand for ZADAXIN® in the

current indications for which it is approved, as well as potential new indications, supported by enhanced and more

targeted sales and marketing strategies. We are pleased to report strong demand for ZADAXIN in the second half of

2013, and believe we are already off to a promising start in 2014.

Our key strategy is expanding our presence in major Tier 1 cities in China, such as Beijing, as well as growing our

presence in Tier 2 and Tier 3 cities. The potential for greater penetration into new target hospitals in these geographies

is very high.

An important growth opportunity is emerging in the hepatitis B market, where ZADAXIN is approved for use. The

prevalence of HBV in China is still quite high at approximately 7%, and the effectiveness of approved antivirals

is diminishing because of resistance. We have seen growing market uptake as ZADAXIN is increasingly used in

combination with approved antiviral therapy, and we intend to continue to market ZADAXIN actively in this indication.

Another growth opportunity beginning to take shape for ZADAXIN is in the area of sepsis. Sepsis remains a large,

growing and underserved market in China. Following the publication in 2013 of the results of a large trial involving

more than 350 patients that showed promising results for use of ZADAXIN in sepsis, the lead principal investigator,

who is a well-known key opinion leader in the China market, has increased direct communications with physicians

about ZADAXIN’s potential impact on outcomes. We believe that this trend can build over time. We plan to continue

to work toward the inclusion of thymalfasin into treatment guidelines.

In terms of our collaborations, we look forward to continuing our promotion agreements with Baxter and Pfizer, and

plan to continue to seek additional, well-structured in-licensing and product promotion partnerships in order to expand

our marketed product portfolio and contribute to our profitability.

Going Wider and Deeper We believe that our “wider and deeper” strategy is the right approach. For the “wider”

strategy, we are expanding our coverage in Tier 2 and Tier 3 cities in high-growth provinces, such as Shandong, Fujian

and others outside of the historically largest five provinces, which are Beijing, Shanghai, Guangdong, Zhejiang, and

Jiangsu. As part of our “deeper” strategy, we intend to further penetrate the larger hospitals in Tier 1 and especially

Tier 2 cities. We are looking forward to the pending Beijing tender, which could further open up a sizeable market

for our products.

A key strategy has been the recruitment of Medical Affairs professionals to augment our communications with

physicians, particularly at large, sophisticated hospitals. These medically trained experts are able to conduct high-

level, peer-to-peer dialogues with physicians. Their presence, especially when communicating about ZADAXIN, can

significantly enhance physician awareness and understanding of the important differences between our product and

low-quality generics, which then enables our sales professionals to operate more effectively. We plan to build these

capabilities further, especially in the cardiovascular arena.

Stronger, More Focused Organization Today, I am proud of the team we have assembled in China and in the US,

and of our ability to continue to attract high-quality talent. We believe that the significant improvements we have made

in strengthening the China management team are having a positive impact. We also believe that the enhancements

we have made in our business practices and accounting controls, and in intensifying our focus on continuously

improving company-wide compliance, will continue to positively affect our business and build our reputation in the

China pharma market and in the global investment community.

Our sales and marketing team has adjusted well to the restructuring we implemented at the end of 2013. Our team

remains organized into three business units. The ZADAXIN business unit, as our core business, has been expanded to

support further penetration into large hospitals in Tier 1, 2 and 3 cities. The oncology business unit remains stable and

focused on the top 300 hospitals. The cardiovascular business unit is focusing on Aggrastat® and preparing for new

business opportunities in the next two to three years, including Neucardin™ and ProFlow™.

Well-Positioned for Growth We continue to see significant growth prospects for the China pharma market. China

is both increasing access and coverage for healthcare services and products, and at the same time, controlling the

rate of growth in healthcare spending. Today, it is estimated that 280-300 million people have been brought into the

healthcare system, with estimates that this number will grow to 700-800 million in the next few years, as healthcare

reform reaches more deeply into secondary and tertiary markets. That is still only two thirds of the 1.3 billion people

in China who need access.

The China pharmaceuticals market continues to grow at a rate that far exceeds established Western markets.

Estimates of that future growth rate for 2014 and beyond are in the 15-20% compounded annual growth rate range

for the next few years. Analysts continue to predict that by 2020, China will become the world’s second largest

pharmaceutical market, growing to potentially $220-$230 billion by that time.

$85

$133

$156

$127 $133

$0.50

$0.62 $0.67

$0.43 $0.44

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$0MM

$20MM

$40MM

$60MM

$80MM

$100MM

$120MM

$140MM

$160MM

$180MM

2010 2011 2012 2013 2014 Guidance

EP

S

Rev

enu

e

Revenue Non-GAAP Basic EPS

$19 $22

$25

$31

$26

$29 $29

$33

$0MM

$5MM

$10MM

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Actual Projected

Y/Y growth >20%

$85

$133

$156

$127 $133

$0.50

$0.62 $0.67

$0.43 $0.44

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$0MM

$20MM

$40MM

$60MM

$80MM

$100MM

$120MM

$140MM

$160MM

$180MM

2010 2011 2012 2013 2014 Guidance

EP

S

Rev

enu

e

Revenue Non-GAAP Basic EPS

$19 $22

$25

$31

$26

$29 $29

$33

$0MM

$5MM

$10MM

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Actual Projected

Y/Y growth >20%

Teamwork

Customer Focused

Accountability

Respect

Integrity

Teamwork

Customer Focused

Accountability

Respect

Integrity

*Non-GAAP financial measures exclude employee stock-based compensation, in-licenses upfront costs, restructuring charges, estimated SEC and DOJ investigation loss, change in fair value of contingent consideration, amortization of acquired intangible assets, intangible assets impairment and net tax benefit related to NovaMed deferred tax assets and liabilities. See our press release and our Form 8-K filed with the SEC on March 12, 2014 for GAAP information and a reconciliation of GAAP to non-GAAP earnings per share.

97546_Txt_v2.indd 3-4 4/18/14 1:03 PM

Page 6: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

We are proud of the team we have assembled in China and in the US, and of our ability to continue to attract high-quality talent. Today, we have the right team in place to help us to grow and expand our business, and continue to operate effectively and in compliance with all regulatory and legal requirements.

Along with growth come challenges. The China government’s very public focus on anti-corruption had a significant

effect on the overall market in 2013. While the market appears to be rebounding, there are indications that we are

seeing a “new normal” taking shape in the market, as some multi-national corporations re-evaluate how they want to

approach this market. They have to maintain a presence in order to leverage growth opportunities, but they could also

tailor their portfolios and divest some products, or reduce their sales presence, all of which could open up interesting

opportunities for SciClone, either for in-licensing or for promotion deals.

While pricing and generic competition continue to be challenges, we believe that the growth opportunities in this

market outweigh those, for the foreseeable future. ZADAXIN is a very strong brand and our relationships throughout

our supply chain and with our distributors are strong. We believe that by working together with them, we can address

potential challenges.

Looking Forward With our strong cash position, we have the resources to pursue strategies, including additional

partnering, that can expand our portfolio of differentiated, high-value products and drive our long-term revenue and

profitability growth. We plan to continue our share repurchase program, which we strongly believe is a value-creating

strategy for our stockholders.

Having come through a challenging 2013, in which we dealt with internal issues as well as externally with

uncertainties in the China pharma market, our outlook for 2014 and for our overall long-term growth is positive. I am

confident that we have the right team in place to help us to grow and expand our business, and continue to operate

effectively and in compliance with all regulatory and legal requirements. We believe that 2014 has the potential to be

a high-performance year for SciClone, and that we are poised to execute well on our objectives.

SciClone’s Board of Directors and management team join me in expressing our appreciation to all our stockholders

for your continued support and interest in our Company.

Friedhelm Blobel, Ph.D.

President and Chief Executive Officer

April 2014

Teamwork

Customer Focused

Accountability

Respect

Integrity Teamwork

Customer Focused

Accountability

Respect

Integrity

Key Marketed Products

Development Products

Embolic drug-eluting bead for targeted delivery of cancer chemo; licensed from BTG/Biocompatibles

Recombinant peptide fragment of neuregulin-1 for chronic heart failure; licensed from Zensun

Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance

Lipid emulsion-based formulation of prostaglandin E1 for peripheral arterial disease (PAD)licensed from Taiwan Liposome Company

Oral film formulation of ondansetron, serotonin 5-HT3 receptor agonist used as anti-emetic agent for chemotherapy-induced nausea and vomiting; licensed from APR Oncology

DC Bead TM

Neucardin TM

Loramyc

ProFlow TM

RapidFilm®

Marketed Products

HBV, HCV, Cancer Adjuvant

Oncology

Cancer Supportive Care

Oncology

Oncology

Oncology

Oncology

Cardiovascular

Zadaxin

Holoxan

Mesna

Endoxan

Methotrexate

Farlutal

Estracyt

Aggrastat

SciClone

Baxter

Pfizer

Cardiome

Teamwork

Customer Focused

Accountability

Respect

Integrity

97546_Txt_v2.indd 1-2 4/18/14 1:03 PM

Page 7: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

Forward-looking StatementS This annual report contains forward-looking statements regarding expected financial results and expectations. 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,” “unaudited,” “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 on-going regulatory investigations and expenses related thereto, including potential fines and/or other remedies; the Company’s ability to execute on its goals in China and on its objectives for revenue in fiscal 2014; 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 the Company does not believe are beneficial; the uncertainties as to the impact of the non-renewal of our agreement with Sanofi; operating an international business; uncertainty in the prospects for unapproved products, including ProFlow™ and Neucardin™, 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; and the effect of changes in its practices and policies related to the Company’s compliance programs. SciClone cannot predict the timing or outcome of the ongoing SEC and DOJ investigations, or of the level of its efforts required to cooperate with those investigations, however, the Company has incurred substantial expenses in connection with the investigations and related litigation and expects to incur substantial additional expense, and the investigations could result in fines that exceed the minimum amount accrued and further changes in its internal control or other remediation measures that could adversely affect its financial results. 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.

Corporate directory

additional inFormation

If you need additional assistance or information regarding the Company, or would like to receive a free copy of the Company’s 10-K or 10-Q reports filed with the Securities and Exchange Commission, please contact our Investor Relations department at 650.358.1447 or send an e-mail message to: [email protected]

Common StoCk liSting

SciClone’s common stock trades on the NASDAQ Global Select Market LLC® under the symbol SCLN.

tranSFer agent

Communications concerning transfer requirements, lost certifications, changes of address and other similar inquiries should be directed to SciClone’s transfer agent:

Computershare P.O. Box 30170 College Station, TX 77842-3170 877.897.6928

Shareholder website: www.computershare.com/investor

Shareholder online inquiries: https://www-us.computershare.com/investor/Contact

independent auditorS

PricewaterhouseCoopers Zhong Tian LLP (PwC China)

legal CounSel

DLA Piper LLP (US)

annual meeting

The Annual Meeting of Stockholders will be held on June 12, 2014 at 10 am PDT at the Marriott San Mateo/San Francisco Airport, 1770 S. Amphlett Blvd., San Mateo, CA 94402. Detailed information about the meeting is contained in the Notice of Annual Meeting of Stockholders and Proxy Statement sent with a copy of the Annual Report on Form 10-K to each stockholder of record as of April 14, 2014.

trademarkS

Aggrastat is a registered trademark of Medicure International Inc. in the United States, and Iroko Cardio LLC or Merck & Co., Inc. in numerous other countries.

DC Bead is a registered trademark of Biocompatibles UK Limited.

Neucardin is a trademark of Zensun Science & Technology Co. Ltd.

ProFlow is a trademark of Taiwan Liposome Company.

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.

Corporate oFFiCerS

Friedhelm Blobel, Ph.D. President and Chief Executive Officer

Wilson W. Cheung Chief Financial Officer, Senior Vice President, Finance and Secretary

Hong Zhao Chief Executive Officer, SciClone Pharmaceuticals China Operations

Board oF direCtorS Jon S. Saxe 1,3,4

Chairman of the Board, SciClone Pharmaceuticals, Inc.; Former CEO Synergen, Inc. (acquired by Amgen); Former President, PDL BioPharma, Inc. (formerly Protein Design Labs, Inc.); Former Vice President, Hoffmann-La-Roche, Inc.

Friedhelm Blobel, Ph.D. 4 President and Chief Executive Officer, SciClone Pharmaceuticals, Inc.

Nancy T. Chang , Ph.D. 3,4 President, Apex Enterprises, Inc.

Richard J. Hawkins 1,2,3 President and Chief Executive Officer, Lumos Pharma; Chief Executive Officer and President, Id2, Inc.

Gregg A. Lapointe 1,2,4 Chief Executive Officer, Cerium Pharmaceuticals, Inc.; Former Chief Executive Officer, Sigma-Tau Pharmaceuticals, Inc.

Simon Li 1,2,3

Former Global Officer and Member of the Executive Committee, Medtronic

Corporate HeadQuarterS

SciClone Pharmaceuticals, Inc. 950 Tower Lane, Suite 900 Foster City, CA 94404-2125 T: 650.358.3456 or 800.SCICLONE Fax: 650.358.3469

weBSite

You can obtain recent press releases and other corporate information by visiting SciClone’s website at www.sciclone.com

1 Audit Committee Member

2 Compensation Committee Member

3 Corporate Governance Committee Member

4 Business Development Committee Member

Page 8: 2013 Annual Report · Miconazole lauriad mucoadhesive tablet for oropharyngeal candidiasis; licensed from BioAlliance Lipid emulsion-based formulation of prostaglandin E1 for peripheral

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