US says Teva to pay $520 mln for bribery in Russia, other states

WASHINGTON, Dec 23 (PRIME) -- Israeli company Teva Pharmaceutical and its 100% Russian affiliate have agreed to pay the U.S. a total of U.S. $520 million out of court under charges of bribery of officials in Russia, Ukraine and Mexico, the U.S. Department of Justice said in a statement late on Thursday.

The companies will pay “a criminal penalty of more than $283 million in connection with schemes involving the bribery of government officials in Russia, Ukraine and Mexico in violation of the Foreign Corrupt Practices Act (FCPA),” and also approximately $236 million in disgorgement to the U.S. Securities and Exchange Commission, the department said.

“According to the companies’ admissions, Teva executives and Teva Russia employees paid bribes to a high-ranking Russian government official intending to influence the official to use his authority to increase sales of Teva’s multiple sclerosis drug, Copaxone, in annual drug purchase auctions held by the Russian Ministry of Health,” the department said without naming the official.

“Between 2010 and at least 2012, pursuant to an agreement with a repackaging and distribution company owned by the Russian government official, Teva earned more than $200 million in profits on Copaxone sales to the Russian government. Moreover, the Russian official earned approximately $65 million in corrupt profits through inflated profit margins granted to the official’s company.”

Teva also admitted to paying bribes to an official within the Ukrainian Health Ministry and to doctors employed by the Mexican government.

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