Led royalty audit of generic pharmaceutical company

Led royalty audit of generic pharmaceutical company

Stout led an audit of a generic pharmaceutical company on behalf of a university. Our audit found changes in the licensee’s methodology in royalty base calculation, which included the use of intercompany transfer average selling price as opposed to arm’s-length market price and inappropriately excluded certain sales as outside of the licensed territory. Our audit findings showed over 50% in underreporting by the licensee.