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Sciclone: China Drug Price Cuts Below Projections

From Associated Press (September 18, 2012)

FOSTER CITY, Calif. -- SciClone Pharmaceuticals Inc. said Tuesday that the government of China has cut the price of its hepatitis and cancer drug Zadaxin.

However SciClone said the cut will have a smaller-than-expected effect on its revenue and profit margins. The company’s shares advanced 58 cents, or 12.4 percent, to close at $5.27 on Tuesday.

SciClone said the retail price of Zadaxin is being cut by 18 percent, but the company’s margins and revenue will be reduced by less than 5 percent, because most of the costs will be borne by its importation and distribution network. SciClone said it had expected a reduction of 7 to 8 percent.

The company also said the price reductions for its cardiology drug Aggrastat and several drugs SciClone markets in China for Pfizer Inc. and Baxter International Inc. were smaller than expected.

Posted: September 2012