Global pharmaceutical company engages compliantly with high-risk vendor

Client background

A top 50 global pharmaceutical company that operates in over 30 countries and regions worldwide. The company has developed several notable drugs and is a leader in neurology and oncology pharmaceuticals. 

The business challenge

The pharmaceutical company had developed a new product that required administration through infusion centers, which presented significant challenges. The product struggled with market penetration as many infusion centers were unfamiliar with the treatment and its associated disease state, making it challenging for the pharmaceutical company to integrate into these centers’ offerings.  

To address the issue, the pharmaceutical company sought to leverage an infusion center network to improve the product’s visibility and adoption by educating members about the treatment and its administration process. To move forward with this strategy, the company engaged Baker Tilly to ensure that the fees they were paying for services and collaboration with the infusion center network were in line with fair market value (FMV) and did not present any bribery or corruption risk. 

Strategy and solution

To assist the pharmaceutical company in addressing its challenges, Baker Tilly developed a detailed FMV analysis and memo documenting both the FMV efforts and business need to engage the infusion center.  By leveraging deep industry expertise and a tailored approach, Baker Tilly not only addressed immediate compliance needs and enabled the business to move forward with the collaboration, but also established a comprehensive strategy to proactively manage future risks. To ensure the contracts met compliance requirements, Baker Tilly executed the following actions: 

• Gained a thorough understanding of the product and services provided 
• Developed a strategic and customized approach to accurately calculate FMV 
• Conducted a rigorous FMV assessment before contract execution, reducing the risk of non-compliance 
• Ensured that the business need of the engagement was documented 
• Completed the review within 2-3 weeks, providing timely results  

Baker Tilly’s involvement was crucial in avoiding compliance issues, such as concerns over bribery and corruption, while also helping to build stronger, more informed relationships with the infusion centers. As a result, the pharmaceutical company ensured the payments were FMV and fully compliant with all relevant regulations. 

The company continues to identify contracts requiring FMV assessments, with Baker Tilly providing timely and thorough evaluations of various external engagements.