SciClone Announces Transition From Pricewaterhousecoopers LLP to Pricewaterhousecoopers Zhong Tian LLP as Independent Registered Public Accounting Firm
(Marketwire Via Acquire Media NewsEdge) FOSTER CITY, CA -- (Marketwired) -- 01/24/14 --
SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that the Audit Committee of the Company's Board of Directors has appointed PricewaterhouseCoopers Zhong Tian LLP ("PwC China") to replace PricewaterhouseCoopers LLP ("PwC US") as the Company's independent registered public accounting firm, effective January 24, 2014. The transition of the audit engagement from PwC US to PwC China was based on the determination that PwC China is the principal auditor under applicable auditing standards and on a variety of quantitative and qualitative factors related to the business, including the geographic location of assets, revenues and operations of the Company.
SciClone is pleased that the transition from PwC US to PwC China is taking place smoothly, and with the full cooperation of all parties involved. The Company further noted that there were no disagreements between the Company and PwC US. "We are pleased to work with PwC China as our Company's independent auditor, and to build on the cooperative relationship we have established with PwC US since April of 2013," said Wilson W. Cheung, SciClone's Chief Financial Officer. "We believe that the PwC China team's deep knowledge and experience within the China pharmaceuticals market, and strong track record of working effectively with companies in the US and China, will serve as excellent resources for SciClone as we continue efforts to grow our business, and as we continue to implement high quality compliance programs throughout our organization. We look forward to further deepening our productive working relationship with PwC China."
The Company has been advised that the recently announced judicial order to impose a temporary ban on the practice by certain China based audit firms, including PwC China, is not formally in effect and is subject to further review and appeal. Based upon information available to the Company, this procedure is not expected to prevent PwC China from completing the Company's audit for fiscal year 2013. The Company will continue to monitor the developments regarding this and evaluate this matter to determine if further action is required.
As in the last several years, SciClone will continue to also work with another global, Big Four firm regarding non-audit work, such as internal controls and tax advisory matters in the US, China and other parts of the world where the Company has operations.
SciClone Pharmaceuticals is a revenue-generating, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio spanning major therapeutic markets including oncology, infectious diseases and cardiovascular disorders. SciClone's proprietary lead product, ZADAXIN® (thymalfasin), is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV), and certain cancers, and as a vaccine adjuvant, according to the local regulatory approvals. Through its promotion business with pharmaceutical partners, SciClone markets multiple branded products in China which are therapeutically differentiated. The Company has successfully in-licensed products with the potential to become future market leaders and to drive the Company's long-term growth. SciClone is a publicly-held corporation based in Foster City, California, and trades on the NASDAQ Global Select Market under the symbol SCLN. For additional information, please visit www.sciclone.com.
This press release contains forward-looking statements regarding expected financial results and expectations. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risk and uncertainties relating to: the course, cost and outcome of regulatory matters, including future pricing decisions by authorities in China; the on-going regulatory investigations; the Company's ability to execute on its goals in China and on its objectives for revenue in fiscal 2014; the challenges presented by integrating an acquired business into existing operations; the effect of management changes and turnover in its China operations; the dependence of our current and future revenue and prospects on third-party license, promotion or distribution agreements including the need to renew such agreements or end arrangements that the Company does not believe are beneficial; operating an international business; the clinical trial process, including the regulatory approval and the process of initiating trials at, and enrolling patients at, clinical sites; and the effect of changes in its practices and policies related to the Company's compliance programs. SciClone cannot predict the timing or outcome of the ongoing SEC and DOJ investigations, or of the level of its efforts required to cooperate with those investigations, however the Company has incurred substantial expenses in connection with the investigations and related litigation and expects to incur substantial additional expense and the investigations could result in fines and further changes in its internal control or other remediation measures that could adversely affect its financial results. Please also refer to other risks and uncertainties described in SciClone's filings with the SEC. All forward-looking statements are based on information currently available to SciClone and SciClone assumes no obligation to update any such forward-looking statements.
SciClone, SciClone Pharmaceuticals, the SciClone Pharmaceuticals design, the SciClone logo and ZADAXIN are registered trademarks of SciClone Pharmaceuticals, Inc. in the United States and numerous other countries.
Wilson W. Cheung
Chief Financial Officer
Source: SciClone Pharmaceuticals, Inc.
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