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No Impact Expected from Change in Auditor at SciClone Pharma (SCLN); China Looks Better - Analyst (GSK)

January 28, 2014 11:20 AM EST Send to a Friend
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Price: $5.06 --0%

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Aegis Capital maintains its Buy rating and $8 price target on SciClone Pharmaceuticals (Nasdaq: SCLN) amid a recent change in principal auditor.

Analyst Raghuram Selvaraju noted, Recently, SciClone Pharma announced that PricewaterhouseCoopers Zhong Tian LLP (PwC China) replaced PricewaterhouseCoopers LLP (PwC US) as the company's auditor, effective January 24, 2014. This complies with the guidelines of the Public Company Accounting Oversight Board (PCAOB) as SciClone’s operations are almost exclusively in China and PwC China is the principal auditor under applicable auditing standards.

Selvaraju addressed recent news that the U.S. SEC put a six-month ban on Chinese auditing firms, saying, This conflict between China and U.S. regulatory bodies has been going on for over a year now and is unlikely to be resolved in the near term, in our view.

Selvaraju also notes recent commentary from GlaxoSmithKline (NYSE: GSK). While pharma reps' interaction with doctors has been more closely scrutinized after Chinese regulators commenced a bribery probe against Glaxo in Q313, the company said trends have been improving in the market. The analyst commented, We believe the marketing conditions in China should keep recovering during 1Q 2014 and it could help pharmaceutical firms’ sales efforts in achieving revenue growth for FY2014.

For an analyst ratings summary and ratings history on SciClone Pharmaceuticals click here. For more ratings news on the Company click here.

SciClone Pharma closed at $4.49 yesterday, with a 52 week range of $4.29 to $6.30.




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