SciClone to Restate Financial Statements for 2012 and 2011 Periods

SciClone to Restate Financial Statements for 2012 and 2011 Periods 
Restatement Is Expected to Increase 2012 Earnings Before Income Taxes
by Approximately $2 Million and to Decrease 2011 Earnings Before
Income Taxes by Less Than $1 Million 
FOSTER CITY, CA -- (Marketwire) -- 02/22/13 --   SciClone
Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that it will be
restating its financial statements for each of the first, second and
third quarters of 2012 and financial statements for each of the
second and third quarters of 2011 and for the year ended December 31,
2011. The restatement primarily relates to accounting errors within
the Company's subsidiary NovaMed in China pertaining to the timing of
Pfizer product revenue recognition and the recognition of product
return reserves as to Aggrastat(R). The Company acquired NovaMed in
April 2011. 
Commented Friedhelm Blobel, Ph.D., SciClone Chief Executive Officer:
"The decision to proceed with a restatement, which is expected to
increase our 2012 revenues and earnings, and decrease our 2011
revenues and earnings, was made after careful review of all the
available facts, the applicable technical accounting rules regarding
revenue recognition, and with the full cooperation and input of our
independent registered public accounting firm, Ernst & Young. We were
particularly cautious as we were concerned about any change that
increases more recent year revenues and earnings. However, after our
close review and our consultation with our auditors, we decided that
this change was necessary for revenue recognition accounting
compliance with Generally Accepted Accounting Principles (GAAP)." 
As a separate matter, Ernst & Young has informed the Company that it
has made a decision not to stand for re-appointment as its
independent registered public accounting firm for the fiscal year
ending December 31, 2013. Jon S. Saxe, J.D., SciClone Chairman of the
Audit Committee, commented: "We want to express our sincere
appreciation to Ernst & Young for their work for us over many years,
and look forward to continuing to work with their team to complete
the 2012 year-end audit. We want to emphasize that there have been no
disagreements between the Company and Ernst & Young. The timing,
which we fully support, permits us to coordinate the selection of a
new auditing firm. We are having discussions with other auditing
firms that have broad experience and expertise in working with
companies operating in the China market and anticipate establishing a
new relationship that would commence when Ernst & Young completes
their work." 
The Company believes the impact of the changes for the first nine
months of 2012 will be to increase the Company's revenue by
approximately $3 million, and to increase the Company's income before
income taxes by approximately $2 million. The Company also believes
the changes for the year ended December 31, 2011 will decrease the
Company's revenue by approximately $1 million and decrease the
Company's income before income taxes by less than $1 million. The
Company believes the impact of the changes will be to increase
goodwill related to the acquisition of NovaMed by approximately $2
million. While the Company expects that there would be other balance
sheet and statement of cash flows adjustments for the relevant
periods, the restatements would not impact the Company's previously
reported cash or cash equivalents balances.  
Further specifics about the restatement are detailed in a Form 8-K
being filed today. The Company intends to amend its 2011 Annual
Report on Form 10-K and other filings, as appropriate, as soon as
reasonably practicable. 
About SciClone  
SciClone Pharmaceuticals is a US-based, China-focused specialty
pharmaceutical company with a product portfolio of therapies for
oncology, infectious diseases and cardiovascular, urological,
respiratory, and central nervous system disorders. SciClone's
ZADAXIN(R) (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 a vaccine adjuvant, according to the local
regulatory approvals. Besides ZADAXIN, SciClone markets about 14
mostly partnered products in China, including Depakine(R), the most
widely prescribed broad-spectrum anti-convulsant in China;
Tritace(R), an ACE inhibitor for the treatment of hypertension;
Stilnox(R), a leading hypnotic for the short-term treatment of
insomnia (marketed as Ambien(R) in the US); and Aggrastat(R), a
recently-launched interventional cardiology product. SciClone is also
pursuing the registration of several other therapeutic products in
China. SciClone is headquartered in Foster City, California. For
additional information, please visit www.sciclone.com.  
Forward-Looking Statements This press release 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 changes in results that may occur
in completing the close of SciClone's consolidated financial
statements for fiscal year 2012 and completing the audit of
SciClone's consolidated financial statements for fiscal year 2012.
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. 
Ambien, Depakine, Stilnox and Tritace are registered trademarks of
Sanofi and/or its affiliates. 
Aggrastat is a registered trademark of Medicure International Inc. in
the United States, and Iroko Cardio LLC in numerous other countries. 
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 Contacts 
Gary Titus 
Chief Financial Officer 
650.358.3456 
gtitus@sciclone.com  
Jane Green 
Investors/Media
650.358.1447
jgreen@sciclone.com 
 
 
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