The stock repurchase program over the past 12 months has cost about $22 million in cash to repurchase 4.2 million shares. The cruddy NovaMed deal was for $24.6 million cash plus 8.3 million SCLN shares. So let's say at this point SciClone is out $46.6 million in cash (plus a few more millions in NovaMed operating losses since the acquisition) and needing to repurchase another 4.1 million SCLN shares just to get us back to square one. Hope this is factored into management 'bonuses' for the year.
Amazing that this goes on daily. I think if you look deep most public biotechs are cash incinerators until they hit the "lottery" which is far from in between. Along the way most brass keep rewarding themselves & diluting shares to keep the game going.Oh well if your in it i guess u got to be prepared for it. As far as SCLN the 13D filed last year might be some hope that changes are happening, maybe having something to do with Titus leaving. Im wondering if the SEC inquiry is holding up things. i guess we have to end of year to get some clue, Whats ur take A6? I f you look around SSRX& SCR both are going private. I think this would be well placed for SCLN & it non/low profit drugs it peddles for large pharmas doing business in China
3SBio and Simcere are both good companies that put together product pipelines that could have substantial value. Their going-private prices are attractive for the buyer and not so bad for investors. In comparison, SciClone bought the lowly NovaMed business for a ridiculous price. Unfortunately SciClone has nothing but Zadaxin and management screwed around with its sales reporting that probably spooked the auditors to quit and gives investors reason to be concerned of the effectiveness of the organization that used to deliver pretty solid results. A buyout will never be supported by Blobel or this board unless they are included - they seem to believe that the company is theirs along with the fat stream of salary, bonus, director fees and piles of options. The 'shareholder rights provisions' are structured to keep away any "unfriendly" offer .Of course Blobel could never pull off a buyout - who would invest the ton of cash needed and leave him in charge? Need to clean out Blobel and the board, sort of like the Hewlett Packard problem - not easy, but necessary.
IMO because sciclone has been amazingly successful "selling" Z growing revs....I can only wonder when some outside party (assuming DOJ thing isnt catastrophic) opens their eyes wide and realize that this stock is worth a lot more