Player Avatar zzlangerhans (99.85) Submitted: 5/13/2012 5:11:52 AM : Outperform Start Price: $5.92 SCLN Score: -8.98

The market blinked a little at SciClone's recent earnings, likely due to a downtick in revenues from recently acquired subsidiary NovaMed. I'm not sure what this signifies, although I have noticed a lot of cyclicity in revenues from pharmas based in China. What I do like about SciClone is that they've been solidly profitable for the last three quarters and they're using profits to build a stronger cash position. Since dilution seems to be a much more prevalent source of pipeline funding in the baby biotech sector, profitability always gets my attention. The remnants of SciClone's pipeline seem to have died out so a new acquisition is a substantial possiblity.

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