Biopharma Compliance – Will Trump Bring an End to Regulations?
Bloomberg BNA Interview with Michaeline Daboul on Biopharma Compliance
Is biopharma compliance nearing its death? In a story for Bloomberg BNA, “Will Overseas Bribery Target Come Off Biopharmas?” writer John T. Aquino ponders the possibility that biopharma compliance of the United States’ foreign bribery law might not be as strict during President Donald J. Trump’s administration. I spoke with Aquino for the Jan. 11, 2017 story, and we discussed why pharmaceutical companies need to focus globally and not change their compliance course during the Trump presidency.
I don’t see companies pulling back from global compliance practices because there are other laws such as the U.K. bribery statute and those of other countries to deal with.
Biopharma Compliance: Part of Risk Management Strategy
For starters, companies always want to minimize the risk of getting fined or worse. Therefore, they tend to adhere to laws on the books. After all, you can’t possibly know if and when the government will choose to enforce a law that already exists, so it is best to just play by the rules. Second, the violations bring in lots of money. Aquino points out in the story that one biopharma company alone shelled out $25 million in the last year.
Lastly, the argument that Trump made when he said the Foreign Corrupt Practices Act (FCPA) was a “horrible law” wasn’t focused on life sciences industry.
At the time he told CNBC that the law prevented American companies from effectively doing business abroad. But he failed to recognize the FCPA makes allowances for cultural differences that might require additional payments and is not as prohibitive as sometimes suggested.
Ultimately, readers of this piece will get expert opinions on the future of biopharma compliance. You will also gain insight into Trump’s view of regulations and the arguments for and against enforcement of the FCPA. Matthew Stephenson and Linda D. Bentley also provide their perspectives.