Healthcare & Life Sciences
How we can help
The FTI Consulting Life Sciences team offers in-depth knowledge of the financial, operational and regulatory challenges that confront pharmaceutical companies and develops appropriate strategic options for clients to pursue. We provide strategic counsel in all aspects of financial, corporate, brand and medical communications. We work closely with our clients to provide the highest quality tax advisory services that are client centric and focused on mitigating tax-risk and minimising cost.
How We Help
The highly experienced tax experts at FTI Consulting leverage our deep understanding of Life Sciences to provide a level of service beyond that available from accounting firms. We work closely with our clients to provide the highest quality tax advisory services that are client centric and focused on mitigating tax-risk and minimising cost.
Licensing. Our depth of experience in BioScience licensing is unrivalled. FTI Consulting has adopted a defined and proactive approach for identifying and addressing key areas of tax sensitivity for a proposed license. Following a brief review of the key components of the transaction at Heads of Terms, our objective is to rule out a number of potential issues allowing focus to be applied to key aspects and at a point when negotiations are more fluid.
This defined approach ensures:
- Cost efficiency
- Best practice
- A greater level of assurance that key aspects will not be overlooked
- We restructured the license to a collaboration with an option that saved US$50m tax on a US$350m deal.
- We recommended a different basis of FTE reimbursement in a collaboration that saved circa £1m in R&D incentives.
- FTI Consulting was an expert witness in a case regarding the inclusion of indirect tax in a royalty clause, resulting in a settlement of US$25m.
- We advised on a positive HMRC clarification of a substantial option fee as qualifying income for the Patent Box.
N-Site. N-Site is a portal for Life Sciences companies with a range of technical guidance notes and workshops on tax, legal and patent & trademark matters that impact the industry. Established by FTI Consulting and developed in association with MedCity and the BioIndustry Association (BIA), the vision is that N-Site will become a primary resource for Expert Guidance for Life Sciences. The aim of N-Site is simple: to be the primary hub of expert guidance for UK based Life Science companies – from embryonic start-ups to established multinationals.
N-Site contains key documents, guidance and workshops of relevance to Life Science businesses, ensuring that companies have the right information to help them make critical strategic decisions. In terms of relevance and insight, the guidance offered here extends far beyond that which is currently freely available. Crucially it will be information that has already been asked for by others. Through this sharing of critical insight and knowledge, companies can be sure that they are accessing the most up-to-date and relevant information – thereby reducing cost and risk.
Research & Development Incentives. The life sciences tax team at FTI Consulting has had many recent successes in enhancing historic R&D tax claims, having successfully negotiated the treatment of expenditure in the pre-clinical and clinical supply chain. We are the only firm taking these points to HMRC. In more than 80% of cases, where companies are being advised by the major accounting firms, we are enhancing the qualifying cost base for historic claims and, importantly, setting an enhanced precedent for future periods.
FTI Consulting has an impressive track record of approving claims with HMRC with full disclosure. Our in-house specialists are well versed in understanding the level of evidence needed to support a claim and undertake a forensic review of costs to map these costs to qualifying expense categories.
Tax Compliance – BioScience Proforma. FTI Consulting is the first firm to challenge long-standing conventions for tax compliance. We have developed a proforma BioScience tax computation, which has been presented to HMRC. This process is designed to cut out several unnecessary steps and, at the same time, significantly improve the quality of the information that is presented. The principal area of focus remains the R&D tax credit and our procedures ensure that this is optimised. Put simply, our unique process enables us to:
- Reduce cost and time
- Improve disclosure
- Focus on the inputs to the R&D claim and ensure qualifying costs are correctly identified as they are incurred
- Pre-empt HMRC concerns
Transfer Pricing. FTI Consulting provides unrivalled transfer pricing services, thanks to our deep industry knowledge and the transfer pricing skills of over 120 first-class economists, accountants and valuation specialists. Our tax team is uniquely positioned to address intellectual property challenges. Also, we are part of the fifth largest international tax network of highly respected transfer pricing and international tax professionals. We use econometrics and benchmark analyses to develop robust valuations of IP assets for use in establishing transfer prices and to assist clients in establishing licensing/royalty rates and sales values for IP assets.