ArriVent BioPharma appoints PwC as new auditor

ArriVent BioPharma, Inc. (NASDAQ:AVBP), a Delaware-based pharmaceutical company, has announced a change in its independent registered public accounting firm. On Monday, the company’s Audit Committee approved the dismissal of KPMG LLP and appointed PricewaterhouseCoopers LLP (PwC) as its new auditor for the fiscal year ending December 31, 2025.

The decision to change auditors was not due to any disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure. KPMG’s reports for the fiscal years ending December 31, 2024, and 2023, contained no adverse opinions or disclaimers and were not qualified as to uncertainty, audit scope, or accounting principles.

During the fiscal years in question and the interim period through March 11, 2025, there were no disagreements that would have led KPMG to reference such issues in their reports. However, the company did report material weaknesses in its internal control over financial reporting, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023. These weaknesses involved the review and approval of manual journal entries and the accounting for certain nonroutine transactions, leading to the restatement of the company’s financial statements for the year ended December 31, 2022. These issues were remediated as of December 31, 2024.

The Audit Committee and KPMG have discussed the reportable events, and KPMG has been authorized to respond fully to inquiries from PwC concerning these events. ArriVent BioPharma has provided KPMG with the disclosures regarding the change of auditors and has received a letter from KPMG, dated today, agreeing with the statements made by the company.

The appointment of PwC comes without any prior consultation regarding matters described in Items 304(a)(2)(i) and (ii) of Regulation S-K during the two most recent fiscal years and the interim period through March 11, 2025.

This announcement is based on a press release statement filed with the Securities and Exchange Commission on March 13, 2025. Looking ahead, InvestingPro analysts have noted concerns about the company’s profitability outlook, with net income expected to decline this year. Discover more insights and 8 additional ProTips about AVBP’s financial health and market position with an InvestingPro subscription.

In other recent news, ArriVent BioPharma has garnered attention with its promising financial and clinical developments. The company reported a cash reserve of $266.5 million at the end of the year, which analysts at Oppenheimer believe will support its operations through 2026. This financial stability is crucial as ArriVent continues to advance its pipeline, including its firmonertinib program for treating non-small cell lung cancer (NSCLC) with EGFR PACC mutations. Recent clinical data presented at the World Conference on Lung Cancer highlighted firmonertinib’s efficacy and safety, with notable objective response rates at varying doses.

H.C. Wainwright maintained a Buy rating for ArriVent, setting a price target of $39, citing the treatment’s effectiveness in both common and rare EGFR PACC mutations. Additionally, ArriVent is making strides in its Antibody-Drug Conjugate programs in collaboration with Lepu Biopharma, Aarvick Therapeutics, and Jiangsu Alphamab. Oppenheimer also reaffirmed its Outperform rating and a $39 price target, emphasizing confidence in the company’s strategic direction.

These developments underscore ArriVent BioPharma’s active role in addressing unmet medical needs and its ongoing efforts to expand its treatment pipeline.

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