Eagle Pharmaceuticals Dismisses Ernst & Young LLP as Independent Registered Public Accounting Firm

Eagle Pharmaceuticals, Inc. (NASDAQ: EGRX) made a significant decision to dismiss Ernst & Young LLP (EY) as its independent registered public accounting firm. The Delaware corporation, on November 21, 2024, formally removed EY from its position with the approval of the Audit Committee of the Board of Directors.

While EY’s previous audit reports for Eagle Pharmaceuticals did not raise any adverse opinions or disclaimers of opinion, the company’s Audit Committee had determined that the audited consolidated financial statements for the fiscal year ended December 31, 2022, as well as other periods, should no longer be relied upon and necessitated a restatement. The delay in financial reporting and subsequent restatement have led to material weaknesses identified in the company’s internal controls over financial reporting.

The Audit Committee disclosed that the restatement concerns the unaudited interim condensed consolidated financial statements for the quarter ended June 30, 2023, among others. The process has impacted the preparation of financial statements for subsequent periods, causing delays. Despite these challenges, during the aforementioned fiscal years and interim periods through November 21, 2024, no disagreements on accounting matters or reportable events between Eagle Pharmaceuticals and EY were reported except for the restatement and material weaknesses.

In response to these developments, Eagle Pharmaceuticals has enlisted BDO USA, P.C. as its new independent registered public accounting firm, effective as of November 26, 2024. BDO will conduct independent audit services for the company’s fiscal periods in 2022, 2023, and through December 31, 2024. The engagement with BDO received approval from the Audit Committee.

As a part of the transition, Eagle Pharmaceuticals has made necessary filings with the SEC, including a letter from EY addressing its agreement with the disclosures made in the current Form 8-K filing. These changes highlight the company’s commitment to maintaining transparency and financial integrity amidst ongoing accounting challenges.

The company disclosed these significant updates in a recent filing with the Securities and Exchange Commission, marking key changes in its accounting processes and signaling a new chapter with its choice of independent registered public accounting firm.

The complete details of the changes in the accounting firms and other relevant exhibit information can be found in the company’s Form 8-K filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eagle Pharmaceuticals’s 8K filing here.

Eagle Pharmaceuticals Company Profile

Eagle Pharmaceuticals, Inc, a pharmaceutical company, focuses on developing and commercializing product candidates to treat diseases of the central nervous system or metabolic critical care, and oncology in the United States. The company offers Ryanodex for malignant hyperthermia; and Belrapzo and Bendeka for chronic lymphocytic leukemia and indolent B-cell non-Hodgkin’s lymphoma.