Japan records surprise trade deficit in July as exports weaken further
SAN DIEGO, CA - Avidity Biosciences, Inc. (NASDAQ:RNA), a biotechnology firm specializing in pharmaceutical preparations with a market capitalization of $3.85 billion, has announced a change in its independent registered public accounting firm. According to InvestingPro data, the company maintains robust liquidity with a current ratio of 15.73, though it faces profitability challenges with negative earnings in the last twelve months. The company’s Audit Committee has appointed Deloitte & Touche LLP as the new auditor for the fiscal year ending December 31, 2025. This change will take effect immediately after the filing of the company’s quarterly report for the first quarter of 2025.
The decision, made on Monday, follows a competitive selection process and coincides with the dismissal of the previous auditor, BDO USA, P.C. Avidity Biosciences confirmed that BDO’s audit reports for the fiscal years 2023 and 2024 did not contain any adverse opinions or disclaimers. There were no disagreements or issues on accounting principles or practices that would have impacted BDO’s reports.
The company disclosed a material weakness in its internal control over financial reporting for the fiscal year 2023, related to certain information technology general controls within its enterprise resource planning system. While addressing these controls, the company maintains a strong balance sheet with more cash than debt, as highlighted in InvestingPro’s analysis, which offers additional insights through its comprehensive Pro Research Report covering 1,400+ US equities. This issue led to an adverse opinion from BDO on the company’s internal control over financial reporting as of December 31, 2023. Avidity Biosciences has since remediated the material weakness, and BDO issued an unqualified opinion on the company’s internal control over financial reporting as of December 31, 2024.
Avidity Biosciences has provided BDO with the disclosures made in the current report and has received a letter from BDO for the Securities and Exchange Commission, confirming their agreement with the statements made regarding the change in certifying accountant.
The company has not consulted Deloitte on any accounting principles or transactions that would require an opinion on the company’s financial statements, nor were there any disagreements or reportable events with Deloitte prior to their appointment.
This change in auditors is part of Avidity Biosciences’ ongoing efforts to ensure the highest standards of financial reporting and transparency. The information is based on a recent SEC filing by the company. Investors should note that the company’s next earnings report is scheduled for May 13, 2025. InvestingPro subscribers can access detailed financial health scores, additional ProTips, and comprehensive valuation metrics to better understand the company’s position in the biotechnology sector.
In other recent news, Avidity Biosciences has announced significant advancements in their drug development programs. The Japan Ministry of Health, Labour and Welfare granted Orphan Drug designation to Avidity’s investigational DM1 treatment, del-desiran, marking a first for this condition in Japan. This designation provides benefits such as tax incentives and priority review. Additionally, Avidity reported positive data from their Phase 1/2 EXPLORE44 trial for del-zota, aimed at treating Duchenne muscular dystrophy exon 44, with plans to file for accelerated approval by the end of 2025.
Cantor Fitzgerald has maintained its Overweight rating on Avidity Biosciences, with a $96 price target, noting progress in the Phase 3 trial of del-brax for facioscapulohumeral muscular dystrophy. Similarly, Citi reiterated a Buy rating and $70 target, highlighting the potential commercial foundation del-zota could establish. H.C. Wainwright also reaffirmed a Buy rating, with a $72 target, following promising trial data showing increased dystrophin levels.
The company is actively preparing for regulatory submissions and potential launches, with a focus on advancing RNA therapeutics for rare neuromuscular diseases. The ongoing Phase 3 HARBOR trial for del-desiran is set to complete enrollment by mid-2025, with marketing applications expected in 2026. Avidity Biosciences continues to engage with stakeholders as it progresses towards key milestones in its development programs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.