SciClone restating results, cites revenue errors
SciClone Pharmaceuticals Inc. said Friday that it will restate its earnings for 2011 and the first nine months of 2012 because of accounting errors.
SciClone said its accounting firm discovered errors related to the timing of revenue recognition for products it sells for Pfizer Inc., and errors related to product return reserves for its cardiology drug Aggrastat. Most of the errors came from its NovaMed Pharmaceuticals unit in China.
The Foster City, Calif., company will restate its results for the second and third quarters of 2011 as well as restating its full-year results.
The company said the changes should add about $2 million to its pretax net income and $3 million to its revenue over the first three quarters of 2012. They will reduce 2011 pretax earnings by less than $1 million and its revenue for that year by about $1 million.
SciClone's main product is Zadaxin, which is used in the treatment of hepatitis and certain cancers. It also markets drugs developed by other companies, mainly in China. The company bought NovaMed in April 2011 for $61.8 million, and it said the changes will increase the goodwill associated with the acquisition by about $2 million.
SciClone fell 25 cents, or 5.2 percent, to $4.57 in after-hours trading. The stock lost 2 cents to close at $4.82 in the regular session.