Shares of SciClone Pharmaceuticals Inc. plunged to a year-low on Tuesday after the biotech company said it is facing inquiries by the Securities and Exchange Commission and the U.S. Department of Justice about possible violations of anti-bribery laws overseas.
SciClone stock tumbled $1.12, or 31.9 percent, to $2.39 in afternoon trading. Earlier in the session they fell more than 40 percent to an annual low of $2.08.
In its earnings report Monday, SciClone said it was contacted last week by the SEC regarding its formal investigation. The company on Friday received a letter from the Justice Department asking to meet regarding its compliance with the U.S. Foreign Corrupt Practices Act. The act makes it illegal for U.S. companies or companies listed on U.S. stock exchanges to offer money or goods to foreign officials in order to win or retain business.
SciClone said the DOJ is investigating the pharmaceutical industry at large, and the agency told SciClone it has received information about practices by SciClone that may violate the law. SciClone said it will fully cooperate with both agencies.
Thursday, August 12, 2010
SciClone plunges on SEC, Justice Dept. inquiries - Yahoo! News
via news.yahoo.com
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