The largest generic drug company in the world, Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA) has stated that it is being targeted by a federal bribery interrogation into its business operations in Latin America.
As per the statement of Teva, the Securities and Exchange Commission has subpoenaed documents and is examining the company’s compliance with the Foreign Corrupt Practices Act that makes it unlawful for companies and individuals to make payments to officials of foreign governments so as to get services.
The Israel-based company has disclosed the enquiry with the Securities and Exchange Commission the previous week. Teva was reportedly notified of the investigation on July 9th and was told that the probe is in its preliminary stages. Teva has also mentioned that it is conducting its own voluntary investigation too.
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Ever since the enforcement of Foreign Corrupt Practices Act has taken place, a number of cases have come into scene. According to the Justice Department, in the years 2009 and 2010, more than 50 people were charged with infringement of the law and government has collected a sum of almost $2 billion as criminal fines. Walmart Stores Inc. is also being investigated for FCPA compliance after there was a report in The New York Times that the company’s unit in Mexico has paid millions of dollars bribe to expedite building permits and gain other favours. The report had also said that even after Walmart had found proofs regarding the scheme, the company executives did not inform authorities.
As per the statement of Teva Pharmaceutical on Thursday, its second-quarter revenue had grown 19% to $5 billion. Sales in the US increased nearly 50% after the company started selling generic forms of psychiatric drugs Zyprexa and Seroquel. Its revenue also got a start-up from its acquisition of Cephalon drug-maker in October. Teva also sells the biggest selling medication for multiple sclerosis, Copaxone.
Shares of TEVA slid 0.30% to $40.38.