Pfizer to pay US$ 60 million to settle US charges

Hannah Blake

pharmaphorum

Pfizer has announced it will pay US$ 60 million to the US government in order to settle US investigations into allegations that its employees tried to win business and increase sales by bribing health and government officials in Europe and Asia.

Pfizer, as part of the settlement, will pay a penalty of US$ 15 million under an agreement with the Department of Justice to resolve an investigation of Foreign Corrupt Practices Act (FCPA) violations. Also, US$26.3 million in profits and prejudgment interest will go towards a civil settlement with the Securities and Exchange Commission (SEC).

Pfizer "took short cuts to boost its business in several Eurasian countries, bribing government officials...to the tune of millions of dollars," according to Mythili Raman, principal deputy assistant attorney general of the Department of Justice's criminal division.

“The actions which led to this resolution were disappointing, but the openness and speed with which Pfizer voluntarily disclosed and addressed them reflects our true culture and the real value we place on integrity and meeting commitments. We expect every colleague across Pfizer to adhere to the highest standards of conduct, and we will continue to hold ourselves and our colleagues accountable for maintaining these standards.”

Amy Schulman, executive vice president and general counsel for Pfizer.

The misconduct was first disclosed by Pfizer to the SEC in October 2004, and while the pharmaceutical company has neither admitted nor denied the allegations, it has been cooperating fully with the government’s investigations since then.