It has been Jake and PropThink that has written enthusiastic support for SciClone since Q3 2012 results came out.
Reading the filing one can find assurance despite the sell-off today. The filing says,
“When originally issued, Ernst & Young’s audit reports on these financial statements did not contain any adverse opinion or disclaimer of opinion and such reports were not qualified or modified as to any issues of uncertainty, audit scope or accounting principles.
In connection with the audits of the Company’s financial statements for each of the two years ended December 31, 2011 and 2010, and in the subsequent interim period through February 19, 2013, there were no disagreements with Ernst & Young on any matters of accounting principles or practices, financial statement disclosure, or auditing scope and procedures which, if not resolved to the satisfaction of Ernst & Young would have caused Ernst & Young to make reference to the matter in their report.”
Small pharma stocks have taken a beating in price after the early start to 2013. This article and the sell off today are a knee-jerk reaction but, partly due to small pharma being out of favor now. E&Y told the company on Feb 18, 2013 they would not stand for re-appointment. The Company releases the restatement soon afterwards. So, read exhibit 99.1 and then expect the Company to take some time and get a good auditing firm to replace E&Y.
By now, I believe several accounting firms have requested the audit work from SciClone…..