SciClone Pharmaceuticals, Inc. (SCLN)
Lazard Capital Markets Healthcare Conference
November 15, 2012 2:00 PM ET
Gary Titus – CFO
Jane Green – Lazard Capital Markets
Jane Green – Lazard Capital Markets
Previous Statements by SCLN
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Good afternoon everyone and thank you for joining me today. And special thanks to Lazard for inviting me here today to update you SciClone’s progress. I much appreciate it. So, throughout the talk today, I will be making some statements that are forward looking and I do ask you to refer to our filings with the SEC as it relates to risks around those statements.
So, if you don’t know SciClone, I think you’ll be a bit surprised to learn that it’s a very different company from most of the companies you may have heard about or seen today. We’re a US based, China focused specialty pharmaceutical company. Our focus is really on building, growing sales and growing profits and reaching the China specialty pharmaceutical market in a very thoughtful and different approach.
We do have a successful and advanced product portfolio both in the market as well as products that we’re bringing to the market. I do plan to bring those to much more detail in a few minutes but I do want to start by mentioning our late products that Zadaxin has crossed over $100 million sales mark last year. And that’s quite a major milestone for any pharmaceutical product in the China market but we’re quite pleased with the progress that we’ve had so far.
But we are profitable we have them profitable for three years and have had growing top-line and bottom line over that period of time. It has been the key goal of the company to focus on the commercial aspects of the business and to focus less on R&D activities which the company had previously focused on.
So on the next slide, as we look at the revenue estimates here, I think it gives you a little bit of a picture of the companies that are operating, list of companies that are operating in the China Pharmaceutical market and in orange on this slide, you’ll see that we are somewhere in the middle there of list of companies. And only a couple of NASDAQ listed companies on this slide. But Hong Kong listing seemed to be more of the preference.
So, as we talk about strategy, I think it’s really important to again emphasize that we are focused on building top-line and bottom line for the company. We do have significant products in the market, we’ve built a strong presence in a number of therapeutic areas, CNS oncology, cardiovascular disease being the most notable. We’re also building a momentum for the company with trying to grow our business through higher margin products that we bring online. And I’ll highlight that in a few minutes and some comparisons to some of the existing products we have.
Our near-term revenue is not dependent on new product approvals, in fact we give guidance to the stream and our guidance is always focused on existing products in the market. And we’ll again get into that in more detail in a few minutes.
We look to grow the company and we want to do that through not only our pipeline, bringing those products to the market and there will be an update on progress there. But in addition we look for in-licensing opportunities for late stage western approved products that we can bring in to the marketplace as well as products being developed locally in China. So, that’s our strategy for trying to continue to grow the company.
So, I do want to emphasize, this is a company focused on China, and very much on the China opportunity. But we are a US listed company. Our office – corporate office is based in California in the San Francisco Bay area. And therefore we play by all the rules that other US listed companies play by including all the SEC regulations, surveying and related standards.
We do have an experienced team in place, we won’t go through that team here but our team is really spread across, a little bit across the globe with a corporate team here in the US. But the bulk of our team exists actually in China, we have some 850 sales people, sales professional, operating in China and then long for core distribution in Hong Kong. So, we are a little bit again of a global presence.
So, our strategy to grow as I said is really focused on what’s happening for us in the market primarily, in other words it’s largely about our lead products Zadaxin. I did mention before, it’s already successful for many years and commercially in China and has not only been able to grow through – in many years of commercialization efforts but has significantly grown in the last few years which I’ll illustrate in a future slide.
But at the end of the day our strategy really has been focused on reaching wider and deeper within commercial market with Zadaxin and what I mean by that is being able to get into additional departments in hospitals that we’re already selling into that’s probably the lowest hanging fruit.