What Life Sciences Companies Get Wrong When Building Cross‑Border R&D Structures

In a recent article published by MedCity News (June 18, 2026), AAFCPAs’ Destiny J. Flood, CPA, Partner, Commercial Outsourced Accounting & Fractional CFO and Richard Weiner, CPA, MST, CM&AA, Tax Partner outline where cross‑border R&D structures commonly break down for life sciences companies—and the practical steps that help avoid tax, accounting, and compliance issues as companies grow, raise capital, or prepare for exit.

Key takeaways:

• Document intercompany arrangements: Maintain transfer pricing agreements that reflect how the business actually operates and revisit them as the model evolves.
• Manage intercompany cash flow: Define timing and funding mechanics so U.S. entities can meet payroll and operating needs.
• Support and preserve R&D tax credits: Keep detailed documentation long term, as credits may be reviewed years later.
• Monitor ownership changes: Track cap table shifts that can limit the use of losses and tax credits.

Putting This Into Practice: Life Science Leadership

AAFCPAs helps life science firms—from start‑ups to public companies—build the financial and tax infrastructure that supports fundraising, operations, and exits. We deliver integrated services including outsourced accounting and fractional CFO support, R&D tax‑credit capture and long‑term documentation, transfer‑pricing and cross‑border tax planning, audit and IPO‑readiness (PCAOB‑registered), and transaction due diligence and tax provision work, all backed by a multidisciplinary team of CPAs, tax attorneys, and technology/process specialists.

Questions? Reach out to our authors directly or your AAFCPAs partner.

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