SciClone Pharmaceuticals, Inc. (SCLN)

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9 Stocks Trading Under $7 With Monster Upside Potential

SciClone Pharmaceuticals (SCLN) is a biopharmaceutical company with a market cap of $307M that focuses on treatments for cancer, hepatitis and other fatal diseases. This American firm primarily markets drugs in China, with a presence in other regions such as Latin America as well. The company’s main drug, Zadaxin, is approved for treatment of hepatitis B in over 30 countries. It has also completed phase 2 of approval for Liver Cancer in the U.S. and Melanoma in Europe, and has completed phase 3 for hepatitis C in Europe. Two more SciClone products are entering the commercialization stage in China, with more products still in the approval process in countries around the world.

Demonstrating China’s growth potential, SciClone’s EPS jumped 72% in 2010, and are expected to grow significantly by 2013. With almost no debt and a current ratio over 7, SCLN’s operating margin in 2010 was 26.31%, also near the top the industry. Further proving the point, the firm had $21 million in free cash flow in 2010, and had a ROE of 30.21%. Assuming China’s pharmaceutical market grows anywhere near analyst estimates, SciClone’s strong performance should pay off for investors.

http://seekingalpha.com/article/274066-9-stocks-trading-under-7-with-monster-upside-potential?source=yahoo