Teva embroiled in internal bribery investigation
pharmafile | December 8, 2016 | News story | Business Services, Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Teva, bribery
Israeli pharmaceutical firm Teva has confirmed it is embroiled in an ongoing internal investigation into allegations of bribery, after the company’s chief executive was tipped off by an anonymous informant.
The probe centres on the accusation that the firm attempted to coerce Romanian doctors into prescribing its $1.1 billion multiple sclerosis treatment Copaxone through payments for travel expenses and speaking and consulting fees.
The investigation was launched when Teva’s chief executive received an email detailing the allegations. The tipster also sent the email to the company’s audit committee and compliance staff, also noting the intention to forward the info to the US Department of Justice and the Securities and Exchange Commission.
The company has reportedly set aside more than $520 million to tackle potential penalties as a result of bribery allegations it is fighting in a number of other countries including Russia, Mexico and Ukraine, and is also one of many firms under scrutiny by US authorities over claims of price hiking.
Teva has said it has attempted to address these issues by terminating employees, “problematic business relationships with third parties,” management of some subsidiary business and even operations in several countries.
Teva is not the only company in recent months to be hit with such allegations; in October, GSK submitted to a $20 million settlement over claims its Chinese arm engaged in bribery of medical professionals, with the company neither admitting or denying any wrongdoing.
Matt Fellows
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