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Today’s Biotech Leaders

Scrubbed understands the nuances and complexities of accounting and finance in your industry, along with the challenges you face in a complicated and ever-changing market. Our experienced team and proven practices enable us to handle your accounting and finance needs with ease.<br><br>Schedule a call with a Scrubbed expert to learn how we can help your biotech or life science company thrive!

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Today’s Biotech Leaders

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  1. 5 Accounting FAQs on the Minds of TODAY’S BIOTECH LEADERS Based on our experience working with biotechs and other life sciences companies, we find the following are among the most frequently asked questions about biotech accounting and finance. 1. How should we recognize revenue for our biotech products and services? For instance, biotechs commonly enter into third-party collaborations to further their drug development and commercialization, gaining a partner to share the costs and risks. Whether you decide to engage with a Contract Research Organization (CRO) to enhance your in- house R&D efforts, or you already secured regulatory clearance and require a Contract Manufacturing Organization (CMO) to expand production capabilities or seek a co-marketing partner to extend your reach, these partnerships introduce complexities into revenue recognition. 2. What’s the best way for our biotech company to raise capital? In an industry that can be capital-intensive, the ability to fundraise successfully is critical to your long-term success and short-term viability. Yet, long development cycles and high risks can deter investors or cause them to favor companies that are at or near the clinical trial phase. The current economic headwinds make it an especially challenging time for biotechs to raise capital—particularly in the wake of Silicon Valley Bank’s fall and the lingering effects it’s projected to have on biotech fundraising. 3. How can our biotech business budget and forecast effectively? While every biotech business has unique characteristics, most of them need to budget for R&D (which often makes up the lion’s share of expenses), along with salaries and benefits for PhD-level scientists and the cost to set up a Scientific Advisory Board. Once you reach the clinical trial stage, you’ll need to budget for the trial’s ongoing expenses while maintaining good cash flow. These are just a few of the many budgeting issues that biotech issues face. 4. How can we optimize our biotech’s tax strategy? Though the specific taxes you’re subject to will vary by location, business structure, and activities, there are some common aspects to consider in optimizing the tax strategy of your biotech business such as Research and development (R&D) tax credit, International taxes, Transfer of IP, and Tax impact of prescription drug fees. These are just a few of the many tax strategy considerations and implications for biotech businesses. Since tax accounting is never straightforward, partnering with an experienced accounting and finance firm that knows the biotech industry is always a smart move. 5. How should we evaluate potential acquisition targets and integrate them into our business? Mergers and acquisitions (M&A) can be a boon to biotechs and life sciences companies. Whether you’re looking to acquire an emerging business that offers IP or other assets of value, or you’re interested in merging with a larger entity that can give you access to new products, expand your R&D capabilities, or enable you to enter new markets, M&A may be an important part of your business strategy. How Scrubbed can help? Scrubbed understands the nuances and complexities of accounting and finance in your industry, along with the challenges you face in a complicated and ever-changing market. Our experienced team and proven practices enable us to handle your accounting and finance needs with ease. Schedule a call with a Scrubbed expert to learn how we can help your biotech or life science company thrive!

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