MIRA INFORM REPORT

Report Date :

27.01.2011

IDENTIFICATION DETAILS

Correct Name :	SCICLONE PHARMACEUTICALS INTERNATIONAL LTD.

Registered Office :	Ugland House, South Church Street, George Town, Grand Cayman, British West Indies

Country :	Cayman Islands

Date of Incorporation :	19.07.1993

Com. Reg. No.:	17068857

Legal Form :	Non-Hong Kong Company

Line of Business :	Importer and Exporter of all kinds of pharmaceuticals, etc

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

SCICLONE PHARMACEUTICALS INTERNATIONAL LTD.

Company ADDRESS

Room 3401A, 34/F., Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong.

PHONE: 2510 0118

FAX: 2508 1500

E-MAIL: hng@spil.org

MANAGEMENT

President & Managing Director: Mr. Hans Peter Schmid

SUMMARY

Registered in Hong Kong on: 19th July, 1993.

Organization: Non-Hong Kong Company.

Capital: Authorised: US$900,000.00

Issued & Paid Up: US$2.00

Business Category: Pharmaceutical Trader.

Group Total Revenues: US$72,411,000 (Year ended 31-12-2009)

Employees: 6.

Main Dealing Banker: Silicon Valley Bank, USA.

Banking Relation: Satisfactory.

Company ADDRESS

Registered Office:-

Ugland House, South Church Street, George Town, Grand Cayman, British West Indies, Cayman Islands.

Head Office & Hong Kong Principal Place of Business:-

Room 3401A, 34/F., Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong.

Holding Company:-

SciClone Pharmaceuticals Inc., USA.

Associated/Affiliated Companies:-

SciClone Group of Companies

SciClone do Brasil-Produtos Farmaceuticos Ltda., Brazil.

SciClone Pharmaceuticals (China) Ltd., China.

SciClone Pharmaceuticals Hong Kong Ltd., Hong Kong.

SciClone Pharmaceuticals International China Holding Ltd., Cayman Islands.

SciClone Pharmaceuticals Italy S.r.l., Italy.

etc.

BUSINESS REGISTRATION NUMBER

17068857

COMPANY FILE NUMBER

F0006057

MANAGEMENT

President & Managing Director: Mr. Hans Peter Schmid

Authorized Representative in Hong Kong: Ms. Ng Kit Lin, Hilda

[Address: Flat E, 16/F., Block 1, Belvedere Garden, Phase 3, Tsuen Wan, New Territories, Hong Kong.]

CAPITAL

Authorised Share Capital: US$900,000.00

Issued & Paid Up Capital: US$2.00

DIRECTORS

(As per registry dated 19-07-2010)

Name (Nationality)	Address
Hans Peter SCHMID	985 Tournament Drive, Hillsborough, CA 94010, USA.
Friedhelm BLOBEL	754 Ashby Drive, Palo Alto, CA 94301, USA.
Richard William HARRIS	134 Sandy Ground Drive, Savannah, Grand Cayman, Cayman Islands.
Gary Stephen TITUS	829 Oak Manor Court, Pleasanton, CA 94566, USA.

SECRETARY

(As per registry dated 19-07-2010)

Name	Address
William Andrew Stewart REID	1366 Queen’s Highway, East End, Grand Cayman, Cayman Islands.

HISTORY

The subject was incorporated in the Cayman Islands. It has established a principal place of business in Hong Kong and was registered on 19th July, 1993 as an oversea company under Part XI of the Hong Kong Companies Ordinance. The subject has become a non-Hong Kong company since 14th December, 2007.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of pharmaceuticals, etc.

Employees: 6.

Commodities Imported: Asian countries, etc.

Markets: Worldwide countries, etc.

Group Total Revenues: US$28,334,000 (Year ended 31-12-2005)

US$32,662,000 (Year ended 31-12-2006)

US$37,058,000 (Year ended 31-12-2007)

US$54,113,000 (Year ended 31-12-2008)

US$72,411,000 (Year ended 31-12-2009)

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION

Authorised Share Capital: US$900,000.00

Issued & Paid Up Capital: US$2.00

Mortgage or Charge: (See attachment)

Group Net Income/(Loss):

(US$ 7,713,000) (Year ended 31-12-2005)

US$ 727,000 (Year ended 31-12-2006)

(US$ 9,948,000) (Year ended 31-12-2007)

(US$ 8,348,000) (Year ended 31-12-2008)

US$11,945,000 (Year ended 31-12-2009)

Profit or Loss: Group business was profitable in 2009.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments on time.

Commercial Morality: Satisfactory.

Banker: Silicon Valley Bank, USA.

Standing: Normal.

GENERAL

SciClone Pharmaceuticals International Ltd., incorporated in the Cayman Islands, was registered in Hong Kong as a Non-Hong Kong Company. The holding company of the subject SciClone Pharmaceuticals Inc. [SciClone] is a US-based firm.

SciClone (NASDAQ: SCLN) is a for-profit, global pharmaceutical company with a substantial international business and a product portfolio of novel therapies for cancer and infectious diseases. Its objective is sustained profitability for the full year 2009 through a combination of international sales growth, a cost-containing clinical development strategy, and focused expense management. “ZADAXIN®”, its brand of thymalfasin and its primary product, is sold in over 30 countries for the treatment of the hepatitis B virus [HBV] and the hepatitis C virus [HCV], certain cancers and/or as a vaccine adjuvant.

The SciClone Group has planned to expand its commercial operations, currently primarily located in China. A key part of its strategy is to leverage its decade of experience in China and to grow its international business by adding commercial stage or near term commercial stage products to its portfolio. For example, after acquiring the Chinese marketing rights to DC Bead™ for liver cancer, it is pursuing its regulatory approval from China.

SciClone was organized in 1990 as a California corporation and reincorporated in Delaware in 2003. Its corporate headquarters are located in Foster City, California.

The SciClone Group’s business in China is handled by SciClone Pharmaceuticals International China Holding Ltd. [SciClone China]. SciClone China has established a sales and marketing organization and extensive importation and distribution channels, which have resulted in strong growth in sales and substantial cash flow. Through its sales organization of more than 160 medical representatives, the Group believes it has developed a good reputation and relationships with physicians and administrators in over 500 hospitals in the major cities in China. It is expanding geographically in China to position the Group for further growth. As a result of these efforts, ZADAXIN is one of the top-selling imported pharmaceutical products in China, measured in revenue, and it has a strong commercial presence in liver disease, cancer and the intensive care setting.

The Group has planned to expand its clinical development and regulatory capabilities in China to develop and commercialise additional products, such as DC Bead, by working with locally established contract research organizations to conduct International Conference on Harmonization, good clinical practice – compliant standard clinical trials and file regulatory documents with the Chinese State Food and Drug Administration [FDA].

ZADAXIN is approved in over 30 countries, primarily in Asia, Eastern Europe, the Middle East and Latin America where its distributors are largely responsible for the marketing and sales of the product. ZADAXIN’s approvals are principally for the treatment of HBV, with additional approvals in certain countries for the treatment of HCV, as a vaccine adjuvant, or as a chemotherapy adjuvant for cancer patients with weakened immune systems. The Group sells ZADAXIN in various international markets through its wholly owned subsidiary which is the subject.

The subject has its principal office in Hong Kong. It orders ZADAXIN from the Group’s European manufacturer and contracts with a third party for the storage of the Group’s finished goods inventory at warehousing facilities in Hong Kong. The subject then distributes the Group’s product worldwide from these warehousing facilities based on purchase orders from the Group’s customers. Under the Group’s established distribution arrangements, local importers and distributors are responsible for the importation, inventory, distribution and invoicing of ZADAXIN.

Product sales were US$72.4 million, US$54.1 million, and US$37.0 million for the years ended 31st December, 2009, 2008 and 2007, respectively, and all were from sales of ZADAXIN.

ZADAXIN is manufactured by third parties under exclusive contract manufacturing and supply agreements. The Group closely monitors production runs of ZADAXIN and regularly conduct its own quality assurance audit programs. The Group believes the manufacturing facilities of its contract suppliers are in compliance with the FDA’s current Good Manufacturing Practices, and the Japanese or European equivalents of such standards.

Currently, three more kinds of pharmaceuticals are under development, namely, SCV-07, DC Bead and RapidFilm.

The Group rely on third parties, who are subject to regulatory oversight, to supply its clinical and commercial products. For example, Biocompatibles is the sole supplier of DC Bead, Applied Pharma Research S.A. is the sole supplier of ondansetron RapidFilm, and Solvay Peptides S.A. is its sole supplier of SCV-07.

For the FY of 2009, the turnover of the SciClone Group was US$72,411,000, net income was US$11,945,000 which was the best in the past five years. As of 31st December, 2009, the Group had 223 employees, 34 in the United States, 176 in China, and 13 in other countries.

The subject is fully supported by the SciClone Group. History in Hong Kong is over seventeen and a half years.

On the whole, consider it good for normal business engagements.

REMARKS:

Brief personal profile of the principal director:-

Mr. Hans Peter SCHMID is the President and Managing Director of the subject and has been with SciClone since 2001. Mr. Schmid has 25 years of financial and pharmaceutical experience in the U.S. and international markets. Prior to joining SciClone, Mr. Schmid was Chief Financial Officer from December 1999 to April 2001 for Questcor Pharmaceuticals Inc. and Senior Vice President, International Business Development from February 1997 to September 1999 for Oread Inc., a contract pharmaceutical company. From 1985 to 1997, he worked at Syntex Corporation as Vice President of Finance and Administration for Pharmaceutical Operations Asia/Pacific region, at F. Hoffmann-LaRoche as Senior Vice President, Finance and Head of Administrative Services for Roche Bioscience. Previously he held financial and operational positions with Itel Corporation in Germany, Japan, England and the U.S. Mr. Schmid received his BA from the Commercial Trade School, Lucerne, Switzerland, and has studied International Business Management and Finance at San Francisco State University. A Swiss, Hans speaks German, French and conversational Japanese.

Court Cases: None per our.

MORTGAGE OR CHARGE

Date	Particulars	Amount
01-10-2010	Instrument: Loan and Security Agreement Property: The Company as legal and beneficial owner, grants and charges to Silicon Valley Bank, a continuing security interest in, and pledges, and, by way of fixed charge, charges, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof Mortgagee: Silicon Valley Bank, USA.	Any present or future guarantor’s obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts a Borrower or Guarantor owes Silicon Valley Bank
01-10-2010	Instrument: Account Charge Property: The Company as beneficial owner charges by way of first floating charge the Charged Accounts (US$ savings account no. 1-793593-003 and HK$ operating check account no. 1-793593-011) and all the Charged Monies and all its right, title, benefit and interest Mortgagee: Silicon Valley Bank, USA.	All present and future obligations and liabilities
01-10-2010	Instrument: Share Charge Property: The Company as legal and beneficial owner assigns to Silicon Valley Bank all benefits present and future, actual and contingent accruing in respect of the Charged Property and all its right, title and interest to and in the Charged Property including all voting and other consensual powers pertaining to the Charged Shares and charges in favour of Silicon Valley Bank all of its interest in the Charged Property by way of a first fixed charge Mortgagee: Silicon Valley Bank, USA.	Any present or future guarantor’s obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts a Borrower or Guarantor owes Silicon Valley Bank

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.53
UK Pound	1	Rs.72.78
Euro	1	Rs.62.14

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.