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.
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