Acknowledgement of Debt Forms in Pharmaceutical Research

In every phase of drug development, from literature search, protocol design and development, site management, financial management and general study administration to final report writing and publication, there are a multitude of agreements and protocols to be completed to ensure proper management of resources. In the past we have discussed how budgets and contracts work hand in hand to determine your return on investment. But, how does a comprehensive acknowledgement of debt form fit into the picture?

An acknowledgement of debt form is a document that is used to show the existence of a debt, to record the consent of the debtor to pay a specific sum on a specific date and to regulate the conditions of payment of the debt. In other words, the acknowledgement of debt form is legally binding and may “override” your agreement to pay back money lent to you. Essential details like amount of debt, payment method, payment due date, delinquent fees etc. must be mentioned in the acknowledgment of debt form and signed by both, the debtor and creditor.

Acknowledgement of debt forms are essential in pharmaceutical research, especially when research funds are provided and need to be properly administered. Pharmaceutical research studies have precise requirements and timelines and the failure to use professional debt acknowledgement forms puts the study’s financial management at risk. However, their use can save time and reduce costs to funds.

For example: Comprehensive, written documentation like acknowledgment of debt forms clearly states who is responsible for payment of the funds to whom and for what. It helps both the study and the company stay ahead of the game by maintaining records of any changes that might occur later. When you are clear about what the debt is for (such as study related costs), where the funds will come from, how much the debt is, when it is payable and who is responsible for repayment, it is clear what funds will be required when and from what source. It is also much easier to monitor budget and track expenditure once the debt acknowledgments are in place.

Having debt acknowledgment forms in place will allow you to focus on developing drug and medical devices rather than maintaining budgets and dealing with financial issues. It is critical to have complete financial accountability in pharmaceutical research. Excellent planning, including all the necessary paperwork and documentation required for a pharmaceutical study is an important part of the study process. Specific forms such as acknowledgements of debt, along with all applicable laws must be in place if you wish to meet the financial goals of the research project. After all, not having debt acknowledgements in place might render you financially liable for unbudgeted items, disappointing results, and ultimately failure to produce a marketable drug.