Pfizer faces fine
August 10, 2012
PFIZER and its subsidiary Wyeth
are set to pay a whopping US$60.2
million dollars in fines after US
officials brought charges of bribery
against the pharmaceutical giant.
As part of the settlement Pfizer
will pay US$15 million to the Justice
Department, and US$26.3 to the US
Securities and Exchange Commission,
whilst Wyeth will pay US$18.8m.
The case surrounds allegations by
the two US authorities that Pfizer
bribed officials and healthcare
professionals in China, Croatia,
Bulgaria, Italy, Kazakhstan, Czech
Republic, Serbia and Russia, with
cash and perks in exchange for
favouring and prescribing its drugs
between 2001 and 2007.
These bribes were in direct violation
of the US Foreign Corrupt Practices
Act, and included inducements
such as mobile phones, cash and
international trips.
“Pfizer subsidiaries in several
countries had bribery so entwined
in their sales culture that they
offered points and bonus programs
to improperly reward foreign
officials who proved to be their
best customers,” said the SEC’s
Kara Brockmeyer.
“These charges illustrate the
pitfalls that exist for companies
that fail to appropriately monitor
potential risks in their global
operations,” she added.
Meanwhile authorities and Pfizer
stressed that the manufacturer had
been cooperating with Government
since 2004 by reporting its own
misconduct to investigators, as well
as informing them of industry
marketing practices overseas.
“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,” Pfizer spokesperson
Amy Schulman.
“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” she
added.
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