SciClone buys NovaMed, expanding presence in China for up to $105 million

USA-based SciClone Pharmaceuticals (Nasdaq: SCLN) says that it has acquired NovaMed Pharmaceuticals, a China-based specialty pharmaceutical company. The acquisition brings additional broad sales and marketing, as well as regulatory and extensive business capabilities and pharmaceutical assets in the regulatory approval stage to its growing and profitable China-focused specialty pharmaceutical business, the US drugmaker said.

Under terms of the agreement, NovaMed shareholders are entitled to receive up-front payments of around $24.7 million in cash, 8,298,110 shares of SciClone common stock valued at about $37.1 million (based upon the closing price of $4.47 on the Nasdaq stock market on April 18, 2011) and the right to additional cash consideration of up to $43.0 million, contingent upon the successful achievement of revenue and earnings targets for the 2011 and 2012 fiscal years, making a total of as much as $104.8 million.

The company anticipates that NovaMed and SciClone's combined revenue for fiscal 2011 on a pro forma basis will be between $140 and $145 million. SciClone's GAAP revenue for fiscal 2011 will exclude NovaMed's revenue prior to the closing of the acquisition.