Compliance in the Life Sciences Sector
It will benefit the life science compliance team if they collaborate with trusted partners to reduce risk.
FREMONT, CA: There are several issues specific to the field because any compliance professional employed in life sciences recognizes them. It is a highly regulated industry, and compliance programs in the life sciences often become complicated, involving multiple jurisdictions addressing extended supply chains and numerous third parties. Life sciences compliance has been put under scrutiny to look at challenges presently the industry is dealing with, how to solve them, and what is there in the future.
Unavoidable Compliance Risks
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When it comes to bribery and corruption, the life sciences industry does not have a decent reputation. It is estimated that more than US$7 trillion is spent on health care worldwide, according to The Lancet, but at least 10-25 percent of this global investment is wasted directly through corruption.
The stakeholders' structure is a primary explanation for this, with many companies directly partnering with hospitals or other government-owned entities. Strong dependency on sales teams and third-party agents or finders to attract government customers reveals an apparent vulnerability to public corruption. As a result, businesses, powered by local customs and regulations, are subject to many enforcement problems, which may include:
• Management of gifts and entertainment
• Exposure to government interference
• A common use of kickbacks in the sales process
• Engagement with politically exposed persons
• Complex supply chains
See Also: Top Pharma and Life Sciences Analytics Consulting Companies
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