Israeli drugmaker Teva fined $519 mn in US for foreign bribes

December 22, 2016

Israeli generic drug giant Teva will pay $519 million to settle charges that it paid bribes to foreign officials to win business in Russia, Ukraine and Mexico, US officials announced Thursday.

Teva, the world's biggest company, promised to enhance its compliance program after its Russia subsidiary pleaded guilty to one count of the Foreign Corrupt Practices Act and it signed off on a deferred prosecution agreement, the Justice Department said.

"Teva and its subsidiaries paid millions of dollars in bribes to government officials in various countries, and intentionally failed to implement a system of internal controls that would prevent bribery," said assistant attorney general Leslie Caldwell.

The case included bribes by Teva Pharmaceutical Industries to a "high-ranking Russian government" official who used his authority to boost sales of the Teva multiple sclerosis drug Copaxone, resulting in more than $200 million in profits for Teva and about $65 million for the Russian official between 2010 and 2012, the Justice Department said.

In Ukraine, Teva also admitted to paying bribes to a senior government official, who agreed to promote Teva drugs. The Ukraine payments to the are from 2001 and 2011.

In Mexico, Teva's subsidiary paid to doctors employed by the Mexican government since at leat 2005, according to the Justice Department.

Teva said it commenced a probe of bribery after learning of problems from employees and US government and employees in early 2012. None of the employees involved in the wrongdoing are still at the company, it said.

"While the conduct that resulted in this investigation ended several years ago, it is both regrettable and unacceptable, and we are pleased to finally put this matter behind us," said Teva chief executive Erez Vigodman. "The Teva of today is a fundamentally different company."

Teva will pay a criminal penalty of $283 to the Department of Justice. It also agreed to pay $236 million in disgorgement to the Securities and Exchange Commission in a parallel case.

Shares of Teva rose 2.2 percent in late-morning trade to $37.18.

Explore further: Teva says US is investigating Copaxone marketing

Related Stories

Teva says US is investigating Copaxone marketing

February 10, 2014
Teva Pharmaceutical Industries said Monday the federal government is investigating its marketing of its multiple sclerosis drug Copaxone and Parkinson's disease treatment Azilect.

Teva expect to close $40.5B Allergan generic deal next week

July 27, 2016
Israeli drugmaker Teva, the largest generic drug company in the world, said Wednesday it expects to complete its $40.5 billion purchase of the generic drug business of competitor Allergan next week after federal regulators ...

Pharmaceutical giant Teva announces new CEO

January 9, 2014
Teva Pharmaceutical Industries, the world's largest maker of generic drugs, said Thursday it had appointed a new chief executive to replace Jeremy Levin, who left abruptly in October.

Teva to lift bid for Mylan: report

July 6, 2015
Israeli pharmaceutical giant Teva plans to increase its bid for rival Mylan and could announce the move as soon as this week, according to a US media report Monday.

Actavis UK accused of overcharging hydrocortisone drug

December 16, 2016
British regulators have accused Actavis UK of charging excessive and unfair prices after the pharmaceutical company increased the price of some hydrocortisone tablets by more than 12,000 percent.

Recommended for you

Study suggests ending opioid epidemic will take years

July 20, 2017
The question of how to stem the nation's opioid epidemic now has a major detailed response. A new study chaired by University of Virginia School of Law Professor Richard Bonnie provides extensive recommendations for curbing ...

Team-based model reduces prescription opioid use among patients with chronic pain by 40 percent

July 17, 2017
A new, team-based, primary care model is decreasing prescription opioid use among patients with chronic pain by 40 percent, according to a new study out of Boston Medical Center's Grayken Center for Addiction Medicine, which ...

Private clinics' peddling of unproven stem cell treatments is unsafe and unethical

July 7, 2017
Stem cell science is an area of medical research that continues to offer great promise. But as this week's paper in Science Translational Medicine highlights, a growing number of clinics around the globe, including in Australia, ...

Popular heartburn drugs linked to higher death risk

July 4, 2017
Popular heartburn drugs called proton pump inhibitors (PPIs) have been linked to a variety of health problems, including serious kidney damage, bone fractures and dementia. Now, a new study from Washington University School ...

Most reproductive-age women using opioids also use another substance

June 30, 2017
The majority of reproductive-age and pregnant women who use opioids for non-medical purposes also use at least one other substance, ranging from nicotine or alcohol to cocaine, according to a University of Pittsburgh Graduate ...

At-risk chronic pain patients taper opioids successfully with psychological tools

June 28, 2017
Psychological support and new coping skills are helping patients at high risk of developing chronic pain and long-term, high-dose opioid use taper their opioids and rebuild their lives with activities that are meaningful ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.