SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) Spurns Buyout Offers

0

Those who pegged their hopes on SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) selling itself to cash in on the acquisition have turned up disappointed. The company has ended its search for a potential acquirer, which was part of the strategic review process that its board was undertaking. What does that mean? It is simple: SciClone will continue to exist as an independent publicly traded company.

It is not difficult to see a company trying to maximize value for its shareholders and SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) has demonstrated it is one. According to the management, the lack of deal coming from the strategic review should not be taken to mean that no one showed interest in the company. The board said in a press release that during the strategic review process, SciClone received multiple offers from prospective buyers. But none of those offers were exciting enough for the board to accept.

What was the board after?

If you read the press release carefully, you see that the board had a specific target when going into the strategic review. For example, the board was looking for a buyout offer that reflected a decent premium to the recent trading price of the stock. The charts show that shares of SciClone have gained more than 37% in the last six month and more than 14% YTD.

If SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) were to sell itself, the management felt the offer should be a decent premium to ensure that it delivers the maximum value to shareholders.

What next after this for SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN)?

The way forward is not clouded. The management and the board said that SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) will continue with its strategic review. However, the remaining part of the review will be to steady the business and generate growth rather than looking for buyers. With that SciClone issued guidance for full-year 2016 financial performance. Revenue for the year is expected in the band of $158 to $163 million and adjusted EPS is expected in the range of $0.70 to $0.74.

Share.

Leave A Reply