M&A activity within the life sciences industry often involves an acquirer that is either a company with the infrastructure in place to commercialize stranded product lines, or a private equity firm with the ultimate goal of an initial public offering. When accounting for a business combination in this industry, two critical questions should be posed:

1. How should the acquisition be accounted for in accordance with GAAP (ASC 805)?

2. Should the historical financial statements (prior to acquisition) of the target be filed with the SEC under Rule 11-01(d)?

In this article originally published in Law360, John Sullivan addresses several of the critical accounting issues related to these acquisitions, including particular considerations regarding proper reporting under ASC 805 and SEC Rule 11-01(d).

For further information please contact Linda Bertolissio or Riina Rintanen.