Biotechnology, pharmaceutical, healthcare technology, medical device, and research and development service organizations face a myriad of financial, operational, regulatory, and capital raising challenges.

1. Overview
Biotechnology, pharmaceutical,
healthcare technology, medical device,
and research and development service
organizations face a myriad of financial,
operational, regulatory, and capital raising
challenges.
• Biotechnology and pharmaceutical
companies are often long-term
entrepreneurial ventures requiring large
capital investments that can take 10 or
15 years to yield a return.
• Medical device companies often require
significant research and development
funding to obtain regulatory approval.
• Evolving changes in legislation can
provide both opportunities and
challenges to healthcare technology
companies.
• Research and development service
organizations aggressively compete to
recruit new customers as they continue
to fuel growth and expansion.
Over a company’s life cycle, cash flow
can be unpredictable, especially in the
earlier stages. As they mature, life science
companies may have changing financial
needs relative to expanded or refocused
operations, merger and acquisition
activities, new product roll-outs, or divesting
brands or business units.
LIFE SCIENCES INDUSTRY
As one of the top accounting, tax, and advisory
firms in the United States, CohnReznick has a
proven track record in helping private, public,
and venture and private-equity backed life
sciences companies manage financial growth
at every stage of their life cycle. We provide
them with a range of services that helps
improve financial reporting and operational
efficiency and minimize tax obligations. Clients
benefit from our entrepreneurial culture that
includes hands-on partner involvement.
Clients We Serve
CohnReznick works with numerous life
sciences clients including drug development
and pharmaceutical companies, medical
device and equipment manufacturers, and
healthcare technology and research, testing,
and laboratory organizations. Our team of
professionals has extensive knowledge in
dealing with accounting and tax requirements
specific to these companies—including
complex licensing deals, tax sensitive financial
structures, purchase price and stock valuations,
and specialized audit services to help meet
lender and investor expectations.
When a private company makes the
decision to go public, the professionals within
CohnReznick’s Life Sciences Industry Practice
have the experience and qualifications to help
prepare for an Initial Public Offering (IPO).

2. Services
Accounting and Assurance
• Audits and reviews
• Accounting for technical accounting matters (including
complex equity structures, equity compensation, capitalized
software, licensing arrangements, and revenue recognition)
• IPO preparation and financing including the issuance of
comfort letters
Tax
• Tax planning and structuring
• Tax compliance
• Income tax provision, preparation, and disclosure
• Tax credit application and advisory services
• State and local tax compliance including Nexus studies
• International tax compliance, advisory, and transfer pricing
Advisory
• Internal controls testing and documentation
• IPO readiness
• SOC 1 examinations
• Merger and acquisition planning
• Licensing agreements and royalty compliance
• Identify and monitor key performance indicators
• Valuation (purchase price allocation, stock, and options)
• Financial, operational, and IT due diligence
• Governance, risk, and compliance
About CohnReznick
CohnReznick LLP is one of the top accounting, tax, and advisory
firms in the United States, combining the deep resources of a
national firm with the hands-on, agile approach that today’s
dynamic business environment demands. With diverse industry
expertise, the Firm provides companies with the insight and
experience to help them break through and seize growth
opportunities. The Firm, with origins dating back to 1919, is
headquartered in New York, NY with 2,700 employees in offices
nationwide. CohnReznick is a member of Nexia International, a
global network of independent accountancy, tax, and business
advisors. For more information, visit www.cohnreznick.com.
Learn More
Including CohnReznick as part of your life sciences financial
advisory team will provide you with access to deep industry
knowledge and experience.
For more information on how your company can benefit
from our services, please visit our website at:
www.cohnreznick.com/lifesciences
In addition, our professionals provide meaningful and timely advice
to CEOs, CFOs, and audit committees of various sized public
companies. Our practice is to help them stay abreast of Securities
and Exchange Commission rules and regulations and comply with
increasingly complex accounting and reporting issues. CohnReznick
is registered with the Public Company Accounting Oversight
Board (PCAOB).
The CohnReznick Advantage
• Capital markets dexterity: When venture capital, growth capital,
a strategic partnership, or a capital raise becomes part of a
life sciences company’s plan, we can access our large network
of resources to introduce clients to the appropriate funding
sources. In addition, we help life sciences clients prepare for a
liquidity event by adapting the necessary infrastructure, including
financial and corporate governance reporting.
• Tax mitigation: We can help our clients alleviate their tax
obligations by leveraging our knowledge of available tax
incentive programs. These include research and development
(R&D) tax credits, orphan drug tax credits, and more. For
companies generating significant operating losses, we work
with management on strategies to preserve the net operating
loss carry-forwards.
• National and global reach: Through offices nationwide, we serve
clients on a local, regional, and national basis. In addition,
through our membership in Nexia International, a top 10
worldwide network of accounting firms, we can seamlessly and
cost-effectively service companies with international interests
across the globe.
• Industry insights, transformative advice: Our life sciences industry
professionals provide timely and proactive views on key industry
trends as well as technical accounting and tax advice related
to raising capital, managing cash flow, licensing, and optimizing
an IPO. Clients have access to our industry-specific articles,
reports, and alerts that are delivered in the context of how leading
trends and issues will impact their organization.
cohnreznick.com
CohnReznick LLP © 2018
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to
avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon
the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or
completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for
the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
CohnReznick is an independent
member of Nexia International