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Press Release -- August 8th, 2012

Continued Strong Revenue Growth for ZADAXIN(R), as Well as Primary Care and Oncology Product Lines

FOSTER CITY, CA– (Marketwire) –08/08/12–SciClone Pharmaceuticals, Inc.(NASDAQ: SCLN) today reported financial results for the second quarter and for the six months endedJune 30, 2012. Results showed strong continued revenue growth on a quarterly and year-to-date basis for ZADAXIN®, the Company’s flagship product, as well as for the primary care and oncology businesses inChina.

Friedhelm Blobel, Ph.D., SciClone President and Chief Executive Officer, commented: “We are pleased with SciClone’s continued strong financial performance, most notably, the increase in ZADAXIN revenue by 19% and 27% for the quarter and year-to-date, and our ability to deliver an impressive rate of growth that continues to exceed that of theChinapharmaceuticals market. We are also pleased to report that the excellent growth includes our primary care product line, indicating increasing momentum for our high-potential products Depakine®, Aggrastat® and Stilnox®, as well as in our oncology product line, led by Estracyt®, Holoxan® and Endoxan®. We believe that theChinamarket offers extraordinary growth and  expansion opportunities, and that we have the right management team, commercial tools, resources and strategies in place to continue to produce impressive revenue and profitability results, and to build our success as a top-tier pharmaceutical company.”

SciClone reported that revenues increased by 22% for the quarter endedJune 30, 2012, to$40.3 million, compared to revenues for the same period in the prior year of$33.1 million. Revenues increased by 45% for the six months endedJune 30, 2012, to$79.5 million, compared to revenues for the same period in the prior year of$54.8 million. The increase in revenues in the second quarter and year to date was due to the continued growth of the ZADAXIN®, primary care and oncology business inChinaand the inclusion of theNovaMed Pharmaceuticals, Inc.(NovaMed) revenues since the date of the acquisition onApril 18, 2011. For the second quarter endingJune  30, 2012, ZADAXIN revenues increased 19% to$30.4 millioncompared to revenues for the same period in the prior year of$25.6 million, and revenues attributable to the primary care and oncology product lines increased 32%, to$9.9 million, compared to revenues for the same period in the prior year of$7.5 million. For the six months endedJune 30, 2012, ZADAXIN revenues increased 27% to$60.2 millioncompared to revenues for the same period in the prior year of$47.3 million, and revenues attributable to the primary care and oncology product lines increased 157% to$19.3 million, compared to revenues for the same period in the prior year of$7.5 million. Comparable periods in 2011 referred to in this press release include the results ofNovaMedonly for the period subsequent to our acquisition ofNovaMed. Increases in revenue from period to period are therefore attributable in part to the acquisition.

On a pro forma basis, assumingNovaMedhad been acquired onJanuary 1, 2011, the revenues for the quarter and six months endedJune 30, 2012of$40.3 millionand$79.5 millionwould have been compared to$34.6 millionand$62.8 million, an increase of$5.7 millionor 16% and$16.7 millionor 27%, respectively.

On a GAAP basis, SciClone’s net income for the second quarter of 2012 was$10.6 million, compared with$2.0 millionfor the same period in the prior year, or$0.19and$0.18per share on a basic and diluted basis, respectively, for the three months endedJune 30, 2012, compared with$0.04and$0.03per share on a basic and diluted basis, respectively, for the same period in the prior year. For the six months endedJune 30, 2012, SciClone reported net income of$19.3 million, compared with$5.8 millionfor the same period in the prior year, or$0.34and$0.32per share on a basic and diluted basis, respectively, compared with$0.11per share on both a basic and diluted basis for the same period in  the prior year.

SciClone’s non-GAAP net income for the second quarter of 2012 was$11.4 million, compared with non-GAAP income of$7.5 millionfor the same period of last year, or$0.20and$0.19per share on a basic and diluted basis, respectively, for the three months endedJune 30, 2012, and$0.13per share on both a basic and diluted basis for the three months endedJune 30, 2011. For the six months endedJune 30, 2012, SciClone’s non-GAAP net income was$21.0 million, compared with non-GAAP income of$12.4 millionfor the same period of last year, or$0.37and$0.35per share on a basic and diluted basis for the six months endedJune 30, 2012, respectively, compared to$0.24and$0.23per share on a basic and diluted basis, respectively, for the same period of last year.

SciClone believes this non-GAAP information is useful for investors, taken in conjunction with SciClone’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of SciClone’s operating results as reported under GAAP. The non-GAAP calculations and reconciliation to comparable GAAP measures were derived principally as a result of theNovaMedacquisition and are provided in the accompanying table titled “Reconciliation of GAAP to Non-GAAP Net Income.”

Sales and marketing expenses for the second quarter of 2012 were$17.7 million, compared with$12.9 millionfor the same period in the prior year. The increase of$4.8 millionwas primarily a result of the additional expansion of the Company’s sales team by approximately 120 sales representatives since last year, which significantly expanded SciClone’s sales and marketing capabilities. The Company now has a combined sales organization comprised of approximately 870 sales and marketing focused professionals inChina. For the six months endedJune 30, 2012, sales and marketing expenses were$35.3 million, compared with$18.1 million, for the same period last year.

Research and development (R&D) expenses for the second quarter of 2012 totaled$1.5 million, compared with$3.1 millionfor the same period in the prior year. Following the Company’s announcement onMarch 2, 2012regarding the futility of our SCV-07 clinical development program in oral mucositis, the Company has taken certain steps to reduce its future US-based clinical development expenses this year and expects further substantial decreases in R&D expenses in 2013. The decrease in R&D for the quarter was primarily related to the discontinuation of the Company’s SCV-07 program. For the six months endedJune 30, 2012, research and development expenses were$4.9 million, compared with$6.2 million, for the same period last year.

General and administrative expenses for the second quarter of 2012 were$4.5 million, compared with$8.3 millionfor the same period in the prior year. The decrease in 2012 was primarily due to one-time transaction costs of approximately$3.3 millionrelated to SciClone’s acquisition ofNovaMedincurred in the 2011 period and lower professional expenses associated with the Company’s compliance activities related to the Company’s Foreign Corrupt Practices Act (“FCPA”) investigation and tax matters. For the six months endedJune 30, 2012, general and administrative expenses were$8.4 million, compared with$14.2 million, for the same period last year.

AtJune 30, 2012, cash and investments totaled$81.9 million, compared with$67.0 millionatDecember 31, 2011. The increase in SciClone’s cash balance was primarily due to the cash generated by the Company’s commercial operations, partially offset by$8.9 millionused in the six months endedJune 30, 2012for the repurchase of SciClone stock.

Conference Call Today

SciClone is hosting a conference call today at4:30 pm ETto provide a financial update. The call will be hosted byFriedhelm Blobel, Ph.D., President and CEO,Gary Titus, Senior Vice President and CFO.

LIVE CALL: 866-788-0538 (U.S./Canada) 857-350-1676 (International) Passcode: 78741367

REPLAY: 888-286-8010 (U.S./Canada) 617-801-6888 (International) Passcode: 66427555 (Replay available fromWednesday, August 8, 2012, at6:30 pm ET until 11:59 pm ETonWednesday, August 15, 2012)

The conference call will contain forward-looking statements. Interested parties who wish to listen to the webcast should visit the Investor Relations section of SciClone’s website at www.sciclone.com. The information provided on the teleconference is accurate only at the time of the conference call, and SciClone will take no responsibility for providing updated information except as required by law.

About SciClone

SciClone Pharmaceuticalsis a revenue-generating, profitable, specialty pharmaceutical company with a substantial commercial business in Chinaand a product portfolio of therapies for oncology, infectious diseases and cardiovascular, urological, respiratory, and central nervous system disorders. SciClone’s ZADAXIN® (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 15 mostly partnered products in China, including Depakine®, the most widely prescribed broad-spectrum anti-convulsant in China; Tritace®, an ACE inhibitor for the treatment of hypertension; Stilnox®, a fast-acting hypnotic for the short-term treatment of insomnia (marketed as Ambien® in the US); and Aggrastat®, 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 risk and uncertainties relating to: the course, cost and outcome of regulatory matters, including pricing decisions by authorities inChina; the on-going regulatory investigations; the Company’s ability to execute  on its goals inChinaand on its objectives for revenue in fiscal 2012; the challenges presented by integrating an acquired business into existing operations; the variability in earnings on a GAAP basis that may result from non-cash charges related to theNovaMedacquisition; the dependence on third-party license, promotion or distribution agreements including the need to renew such agreements; operating an international business; the clinical trial process, including the regulatory approval and the process of initiating trials at, and enrolling patients at, clinical sites; the effect of changes in its practices and policies related to the Company’s compliance programs. SciClone cannot predict the timing or outcome of theSECand 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 additional expense and the investigations could result in fines and further changes in its internal control or other remediation measures that could adversely affect its business. Please also refer to other risks and uncertainties described in SciClone’s filings with theSEC. 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 ofMedicure International Inc.inthe United States, andIroko Cardio LLCin numerous other countries.

Estracyt is a registered trademark ofPfizer International Trading (Shanghai) Ltd.

Holoxan and Endoxan are registered trademarks ofBaxter Healthcare Trading (Shanghai) Co. Ltd.

SciClone,SciClone Pharmaceuticals, theSciClone Pharmaceuticalsdesign, the SciClone logo and ZADAXIN are registered trademarks ofSciClone Pharmaceuticals, Inc.inthe United Statesand numerous other countries.

                       SCICLONE PHARMACEUTICALS, INC.

              UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

                  (in thousands, except per share amounts)

                                     Three Months Ended   Six Months Ended

                                          June 30,            June 30,

                                     ------------------  ------------------

                                       2012      2011      2012      2011

                                     --------  --------  --------  --------

Net revenues:

  Product sales                      $ 32,208  $ 27,389  $ 63,466  $ 49,051

  Promotion services                    8,085     5,719    15,990     5,719

                                     --------  --------  --------  --------

    Total revenues, net                40,293    33,108    79,456    54,770

Operating expenses:

  Cost of product sales                 5,215     5,174    10,156     8,277

  Sales and marketing                  17,689    12,861    35,329    18,089

  Amortization of acquired

   intangible assets, related to

   sales and marketing                    882       714     1,766       714

  Research and development              1,493     3,091     4,886     6,200

  General and administrative            4,455     8,259     8,416    14,217

  Contingent consideration*            (1,171)      808    (2,087)      808

                                     --------  --------  --------  --------

    Total operating expenses           28,563    30,907    58,466    48,305

                                     --------  --------  --------  --------

Income from operations                 11,730     2,201    20,990     6,465

Non-operating income (expense):

  Interest income                          15        13        45        33

  Interest expense                        (55)      (53)     (110)     (110)

  Other (expense) income, net             (14)       (4)      (15)       11

                                     --------  --------  --------  --------

Income before provision for income

 tax                                   11,676     2,157    20,910     6,399

Provision for income tax                1,057       174     1,611       567

                                     --------  --------  --------  --------

Net income                           $ 10,619  $  1,983  $ 19,299  $  5,832

                                     ========  ========  ========  ========

Basic net income per share           $   0.19  $   0.04  $   0.34  $   0.11

Diluted net income per share         $   0.18  $   0.03  $   0.32  $   0.11

Weighted average shares used in

 computing:

  Basic net income per share           57,239    55,666    57,470    52,301

  Diluted net income per share         59,517    58,223    59,612    54,807

                       SCICLONE PHARMACEUTICALS, INC.

                RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

                  (in thousands, except per share amounts)

                                 (unaudited)

                                       Three Months Ended  Six Months Ended

                                            June 30,           June 30,

                                       ------------------ ------------------

                                         2012      2011     2012      2011

                                       --------  -------- --------  --------

GAAP net income                        $ 10,619  $  1,983 $ 19,299  $  5,832

Non-GAAP adjustments:

  Employee stock-based compensation       1,114       724    2,036     1,249

  Contingent consideration               (1,171)      808   (2,087)      808

  Amortization of acquired intangible

   assets                                   882       714    1,766       714

  Acquisition related costs                   -     3,260        -     3,822

                                       --------  -------- --------  --------

    Non-GAAP net income                $ 11,444  $  7,489 $ 21,014  $ 12,425

                                       ========  ======== ========  ========

Non-GAAP basic net income per share    $   0.20  $   0.13 $   0.37  $   0.24

Non-GAAP diluted net income per share  $   0.19  $   0.13 $   0.35  $   0.23

Weighted average shares used in

 computing:

GAAP and Non-GAAP basic net income per

 share                                   57,239    55,666   57,470    52,301

GAAP and Non-GAAP diluted net income

 per share                               59,517    58,223   59,612    54,807

SciClone management uses these non-GAAP financial measures to monitor and evaluate the Company’s operating results and trends on an on-going basis and internally for operations, budgeting and financial planning purposes. SciClone believes the non-GAAP information is useful for investors by offering them the ability to better understand how management evaluates the business. These non-GAAP measures have limitations, however, because they do not include all items of income and expenses that affect SciClone. These non-GAAP financial measures that management uses are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP.

SciClone’s non-GAAP financial measures exclude the following items from GAAP net income and net income per share:

  • Employee stock-based compensation. The effects of non-cash employee stock-based compensation.
  • *Contingent consideration. The contingent consideration related to the acquisition ofNovaMed is re-measured each reporting period and the change in fair value is recorded as an adjustment to operating expense. SciClone’s non-GAAP financial measure excludes the change in fair value of the liability for contingent consideration in connection with the acquisition ofNovaMed.
  • Amortization of acquired intangible assets. We recorded intangible assets in connection with the acquisition ofNovaMed. The amortization of these intangible assets is excluded from SciClone’s non-GAAP financial measure.
  • Acquisition related costs. We incurred certain one-time acquisition costs related to the acquisition ofNovaMed. The effects of these acquisition related costs are excluded from SciClone’s non-GAAP financial measure.
                       SCICLONE PHARMACEUTICALS, INC.

                    UNAUDITED SELECTED BALANCE SHEET DATA

                               (in thousands)

                                                    June 30,    December 31,

                                                      2012          2011

                                                 ------------- -------------

Cash and investments                             $      81,914 $      67,018

Accounts receivable                                     41,763        42,226

Inventories                                              8,220         8,813

Intangible assets, net                                  43,198        45,185

Goodwill                                                31,792        31,973

Total assets                                           211,914       200,326

Total current liabilities                               37,774        25,284

Contingent consideration                                13,325        15,400

Deferred tax liabilities                                 8,318         8,715

Borrowing on line of credit                              2,500         2,500

Total shareholders' equity                             165,460       150,458
Corporate Contacts

Gary Titus

Chief Financial Officer

650.358.3456

gtitus@sciclone.com

Jane Green

Investors/Media

650.358.1447

jgreen@sciclone.com

Source:SciClone Pharmaceuticals, Inc.

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