BFSF FMV for life sciences companies: contracting with third parties in high corruption countries
Anti-Bribery Anti-Corruption (ABAC) legislations such as the U.S. Foreign Corrupt Practices Act (FCPA) hold companies accountable for the behavior of third parties throughout their extended enterprise. To be compliant within the U.S. isn’t enough; as life sciences products become more specialized and integrated into the global market, ABAC programs need to consider the risks and implications of engaging with third parties outside of the U.S. Specifically, one of the greatest risks to a global ABAC program is contracting with third parties in countries that are high on the Corruption Perceptions Index (CPI). Life sciences companies engaging with vendors in high CPI countries should be performing Fair Market Value (FMV) assessments for Bona-Fide Services Fee (BFSF) arrangements if these vendors are also customers who can influence prescribing behavior.
Listen to Baker Tilly’s informative, on-demand webinar for a discussion about what factors life sciences companies should consider when conducting a BFSF FMV assessment in high CPI countries. Our team of Value Architects™ discuss:
- Characteristics of the life sciences industry that increase the risk of bribery and corruption
- Ways in which pharmaceutical companies engage third parties and best practices for third party due diligence
- Recent enforcement actions and compliance considerations for BFSF FMV
- Valuation approaches to FMV for BFSF arrangements and impact of COVID-19 on FMV calculations
