Alexion Pharmaceuticals pays SEC $21.4 million to resolve FCPA offenses
Connecticut-based Alexion Pharmaceuticals, Inc. agreed to pay $21.4 million to resolve SEC charges that
the company violated the FCPA by bribing foreign officials in Turkey and Russia,
and failing to maintain accurate books and records at subsidiaries in Brazil and Colombia.
The SEC charged Alexion Thursday in an internal administrative order with violating the FCPA’s books and records and internal controls provisions.
Without admitting or denying the SEC’s findings,
Alexion agreed to pay a $3.5 million penalty, plus $14.2 million in disgorgement and about $3.8 million in prejudgment interest.
The investigation started in 2015, according to the company’s earlier SEC filings.
In May this year, Alexion said it received a declination from the DOJ for the FCPA investigation.
In Turkey and Russia,
Alexion paid government officials and doctors at state-connected hospitals to promote use of its blood-disease drug, Soliris.
Alexion retained a consultant in Turkey from 2010 to 2015 with ties to health officials.
Alexion Turkey paid the consultant over $1.3 million for “consulting fees and purported expense reimbursements,” the SEC said.
Alexion employees in Turkey “received limited training regarding anti-bribery compliance,” according to the the SEC order.
In Russia,
Alexion paid doctors at government hospitals over $1 million from 2011 to 2015 to increase Soliris prescriptions.
Alexion Russia recorded the payments as “honoraria, educational expenses, business meeting expenses, and scientific research.”
The bribery resulted in Alexion being “unjustly enriched” by about $6.6 million in Turkey and $7.5 million in Russia, the SEC said.
The FCPA Blog