SciClone to restate financials for 2011, 2012

theflyonthewall.com

SciClone Pharmaceuticals announced that it will be restating its financial statements for each of the first, second and third quarters of 2012 and financial statements for each of the second and third quarters of 2011 and for the year ended December 31, 2011. The restatement primarily relates to accounting errors within the company's subsidiary NovaMed in China pertaining to the timing of Pfizer product revenue recognition and the recognition of product return reserves as to Aggrastat. The company acquired NovaMed in April 2011. Commented Friedhelm Blobel, Ph.D., SciClone CEO "The decision to proceed with a restatement, which is expected to increase our 2012 revenues and earnings, and decrease our 2011 revenues and earnings, was made after careful review of all the available facts, the applicable technical accounting rules regarding revenue recognition, and with the full cooperation and input of our independent registered public accounting firm, Ernst & Young. We were particularly cautious as we were concerned about any change that increases more recent year revenues and earnings. However, after our close review and our consultation with our auditors, we decided that this change was necessary for revenue recognition accounting compliance with Generally Accepted Accounting Principles (GAAP)."

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