The Justice Department has joined the Securities and Exchange Commission in scrutinizing the Israeli generic drug producer Teva Pharmaceutical Industries Ltd. for potential foreign bribery violations, according to a regulatory filing.
The company disclosed in August that it had hired outside counsel after being subpoenaed by the SEC in July about its operations in Latin America.
In a 6-K foreign issuer’s report filed Thursday with the SEC, the company said it had also received “informal document requests” from the Justice Department on Oct. 10 and Oct. 26. The company says it is also conducting an internal review.
Based in the city of Petah Tikva east of Jerusalem, the company boasts of a 20 percent share of the U.S. market, with 1.5 million prescriptions for its drugs written by U.S. doctors every day. The company is traded on the New York Stock Exchange via American Depositary Receipts and reported a 14 percent year-on-year rise in third-quarter net revenues to $5 billion.
Here is the relevant text from Thursday’s filing:
Teva received a subpoena dated July 9, 2012 from the SEC to produce documents with respect to compliance with the Foreign Corrupt Practice Act (“FCPA”) in Latin America. On October 10 and October 26, 2012, the Department of Justice sent informal document requests to the Company as well. Teva is cooperating with the government. Teva is also conducting a voluntary investigation into certain business practices which may have FCPA implications and has engaged independent counsel to assist in its investigation. These matters are in their early stages, and no conclusion can be drawn at this time as to any likely outcomes.
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