Due Diligence on Biopharma Company Unearths Hidden Red Flags

Background

Forward Risk was tasked with identifying risk-relevant information regarding a Nasdaq-listed biopharmaceutical company operating in the US and Middle East.

Our Work

We engaged in a close review of both US-based and overseas stock exchange filings, and conducted extensive relationship mapping across multiple countries, which ultimately revealed several largely undisclosed links between the company and its supposedly independent auditor firm. These included several former executives at the company of interest who had also worked at the auditor firm, as well as close physical proximity between both offices.

Results

Our findings ultimately uncovered a red flag that had not yet been publicly discussed by media outlets or investment analysts, and indicated a potential need for a new, truly independent audit.