Teva and its subsidiary in Russia, will pay $520 million on charges of bribery – RBC

the Plant of Teva Pharmaceutical in France

Photo by Fred Doufor/AP

the Israeli pharmaceutical company Teva and its Russian “daughter” will pay a total of $ 520 million for bribery, said the U.S. justice Department. In particular, the company was accused of bribery to the Russian official in the government

the Israeli pharmaceutical company Teva Pharmaceutical and its subsidiary in Russia Russia Teva agreed to pay US approximately $ 520 million on charges of corruption, according to the website of the U.S. Department ustii.

According to the Agency, the company will pay $ 283 for the use of schemes involving bribes to government officials in Russia, Mexico and Ukraine.

“Teva and its subsidiaries paid millions of dollars in bribes to government officials in various countries and deliberately introduced a system of internal control, which would help to avoid bribery, — stated in the message of Ministry of justice of the United States. — Companies that compete fairly, ethically and honestly, deserve equal conditions, and we will continue to pursue those who do not follow this goal.”

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In particular, according to the Ministry, heads and employees of Teva Teva Russia gave bribes to senior Russian government official. The way they were intended to influence the public servant that he used his power to raise the sales of the medicines company at the annual auction, which was held by Russian Ministry of health. The Israeli company, according to the U.S. Department earned $ 200 million, and the Russian official received about $ 65 million.

In Ukraine, according to the U.S. Department of justice, Teva bribed high-ranking official in ministerstve health. He was to influence the Ukrainian government that it approved the registration of medicines by the company for its work on the Ukrainian market. From 2001 to 2011, Teva brought this official as your “registered consultant”, paying him a monthly salary, paid travel and other expenses, which amounted to approximately $ 200 thousand.

In Mexico, according to us, the Ministry, Teva paid to doctors in public health institutions to those patients prescribed the drug company.

in addition, the Commission on securities and the markets have reached an out of court agreement under which Teva and Teva Russia will pay another $ 236 million fine for the illegal profits with interest. In General, payments of the Israeli company will be approximately $ 520 million.

Teva on the results of ten months of 2016 out of the ten largest drug manufacturers in Russia with a share of pharmacy sales of around 3%, according to DSM Group. The Israeli company entered the Russian market in 1995, and in 2014 the company has its own factory in Yaroslavl region. Sale Teva in Russia by the end of 2015 increased by 3% to RUB 29.1 billion.

This is not the first drug company that suffered losses due to payments to officials in Russia. In August 2016, it became known that the Anglo-Swedish AstraZeneca agreed to pay over $ 5 million fine in the United States for the settlement of claims for payments to company officials and workers in China and Russia. The company is practiced in Russia improper payments to employees of state health facilities with at least 2005 to 2010, stated in the Commission’s investigation.