World’s largest generics manufacturer admits paying bribes in Russia, Ukraine and Mexico

Israeli-headquartered Teva Pharmaceuticals and its Russian subsidiary have been fined $520 million (£420 million) by US authorities for corrupt practices in Russia, Ukraine and Mexico. It is the largest such penalty to be imposed on a pharmaceutical company for breaches of the Foreign Corrupt Practices Act.

Teva must pay $283 million in criminal penalties to the Department of Justice and return $236 million of associated profits (including interest) to the Securities and Exchange Commission. The charges relate to illicit payments made between 2001 and 2013 to government officials and doctors in order to gain regulatory approvals and favourable purchase and prescription decisions.

Teva has engaged voluntarily in the investigation since 2012, and stated that none of the employees responsible for the improper payments still work for the company. This includes in Russia, where the entire leadership team was replaced in 2013.