Sunshine Act/Open Payments Reporting: An Overview

What are the steps of due diligence? 

Before entering an agreement, businesses and individuals are expected to undertake reasonable investigations or exercises of care. This is known as due diligence. 

Within the pharma industry, due diligence is a must. However, businesses in the pharmaceutical sector are usually expected to hire third-party due diligence companies to perform unbiased investigations and results for the interested parties. 

Due diligence is mainly seen in mergers and acquisitions where information is crucial and has the power to make or break a deal. Due diligence in such situations involves a corporation performing extensive studies and inquiries to determine what it stands to gain from acquiring another entity and learning about any potential hazards. 

Due diligence, especially the processes of third-party due diligence, carries particular significance in the pharmaceutical industry because of the many rules and regulations that govern the sector. In addition, the number of mergers and acquisitions in the pharma industry is exceptionally high and requires extra attention from third-party due diligence companies. 

When considering a potential merger or acquisition, your business must decide if the new company is worth its claimed value. But how do you do this? 

1. Compile a team. You’ll want legal and financial experts, among others, to help guide and review the investigation and findings to ensure you know what you are getting into. 

2. Prepare a checklist. Your checklist will help ensure nothing is missed and should cover these 6 major topics:  

• How is the company structured? 
• What assets and products does the company have? 
• In-depth and accurate financial data spanning several years. 
• The commercial landscape in which the business is situated. 
• Legal aspects related to the company. 
• And any relevant cultural aspects your business should consider. 

3. Consider using available software and third-party due diligence companies. Many around can help your business complete a thorough investigation fast. 

Non-compliance issues are expensive, but MedCompli’s third-party due diligence process isn’t. Guarantee your business’s safety with automatic end-to-end third-party monitoring to prevent potential issues before they can cause problems. 

You can schedule a free demo of MedCompli’s software and services at any time to ensure that they are the right fit for you before you pay or sign any agreements.