“Practicing very aggressive sales compliance has become an important topic for companies looking for a China partner and it is becoming a positive differentiator for us.”

-Dr. Blobel on SciClone’s compliance focus, BioWorld Asia, December 24, 2014

SciClone has successfully built its product portfolio by embracing a specialty pharmaceutical business model that drives revenue growth through partnering. We intend to further supplement our product portfolio by continuing to seek high-quality, differentiated therapeutics for in-licensing or promotion service agreements. In an increasingly competitive environment for these types of assets in China, we believe we are well positioned as a partner-of-choice.

Our long-term commitment to the China market, knowledgeable and experienced management team, extensive commercial expertise and unique market insights, as well as our reputation for quality products, established local presence and well organized commercial infrastructure, proven regulatory capabilities and strong supply chain relationships, including with key distributors, are among the many important attributes that contribute to our standing as a partner-of-choice in the China pharma market.

Additionally, we have invested extensively in building an industry-leading compliance program, which has strengthened our reputation in the China pharmaceutical market, differentiated us from competitors, and created a foundation for successful partnering. We have also been an early-adopter and implementer of new marketing strategies, including a focus on medical education and training for physicians, direct-to-patient e-commerce and e-marketing strategies and outfitting our sales force with state-of-the-art electronic tools to facilitate more effective customer interactions.

As the China market continues to evolve, SciClone will increasingly be viewed as a partner-of-choice for companies that may want to participate in the market’s growth, but reduce their risk exposure. We believe that our sales acumen, the reputation of our sales organization, and our market knowledge and extensive compliance program will continue to be partnering assets in the coming years. Our strong cash flow and cash balance, combined with operating efficiencies and well managed organizational growth, should continue to provide us with the resources to acquire potentially valuable assets that can continue to drive our growth and strengthen our position in the China pharma market.

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