Corporate Banner
Satellite Banner
Medicinal Chemistry
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Pfizer Announces Resolutions with DOJ and SEC Related to Certain International Operations

Published: Thursday, August 09, 2012
Last Updated: Thursday, August 09, 2012
Bookmark and Share
U.S. agencies praise Company’s cooperation and compliance program.

Pfizer Inc. has announced that it has resolved U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) matters related to certain improper payments in the operations of two of its subsidiaries outside the United States, which Pfizer voluntarily reported to the U.S. government beginning in 2004.

To resolve those historical issues, a Pfizer indirect subsidiary (Pfizer H.C.P. Corporation) will enter into a deferred prosecution agreement with the DOJ, and pay a fine of $15 million.

Under the terms of a civil settlement with the SEC, Pfizer Inc. agreed to a disgorgement of profits of $16 million and prejudgment interest of $10.3 million. The DOJ declined to bring a criminal action against Pfizer Inc.

In a separate civil settlement also announced with the SEC, Pfizer’s Wyeth subsidiary has agreed to a disgorgement of profits of $17.2 million and prejudgment interest of $1.66 million to resolve issues involving certain improper payments in the operations of four subsidiaries outside the United States.

Pfizer conducted a risk-based Foreign Corrupt Practices Act (FCPA) due diligence review of Wyeth’s global operations after it acquired the company in late 2009 and, as it had with its own issues, promptly and voluntarily disclosed these issues to the U.S. government.

There is no allegation by either DOJ or SEC that anyone at Pfizer’s or Wyeth’s corporate headquarters knew of or approved the conduct at issue before Pfizer took appropriate action to investigate and report it.

As soon as these local activities came to the attention of Pfizer’s corporate headquarters, they were voluntarily brought to the attention of the DOJ and SEC. Today’s settlements are focused solely on these local activities.

Both the DOJ and SEC praised Pfizer’s cooperation with the investigation and its enhanced compliance program. In the deferred prosecution agreement, the DOJ noted “the extraordinary cooperation of Pfizer H.C.P.’s parent company, Pfizer Inc.,” including “thorough and responsive reporting of potential violations,” as well as “early and extensive remedial efforts.”

The SEC highlighted Pfizer’s creation of “innovative and proactive anti-corruption compliance reviews” and its commitment to “comprehensive anti-corruption training throughout the organization.”

“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,” said Amy Schulman, executive vice president and general counsel for Pfizer.

Schulman continued, “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. We are grateful that the DOJ and the SEC specifically recognized our extensive proactive compliance efforts and cooperation with the investigation, which demonstrates the hard work of many colleagues throughout the world and underscores the ongoing productive work we have done in this area.”

All the conduct at issue was investigated by Pfizer and voluntarily disclosed to the U.S. government. Pfizer began self-reporting to the U.S. government in 2004 after the discovery of certain improper payments that had been made by employees of a recently-acquired Pfizer affiliate in Croatia.

Pfizer legal and compliance staff, outside counsel and auditors then conducted an intensive, global, multi-year internal investigation. Throughout this period, Pfizer regularly briefed both the DOJ and SEC on its findings.

The DOJ settlement with Pfizer H.C.P. Corporation covers improper conduct in Bulgaria, Croatia, Kazakhstan, and Russia. The Pfizer SEC civil settlement covers improper conduct in all of these countries as well as in Italy, China, the Czech Republic and Serbia.

In addition, Pfizer’s post-acquisition due diligence review of Wyeth identified certain improper payments in China, Saudi Arabia, Indonesia and Pakistan.

Pfizer identified these legacy-Wyeth issues within 180 days after the acquisition closed, voluntarily disclosed them to the U.S. government, and they are covered in Wyeth’s separate SEC civil settlement.

In recognition of the depth of Pfizer’s extraordinary and proactive efforts to self-report dating back to 2004, as well as its adoption of an extensive anti-corruption compliance program, the DOJ and the SEC agreed that the appointment of an independent compliance monitor for the company was unnecessary.

As part of its agreement with the DOJ, Pfizer H.C.P. Corporation will continue to cooperate with the DOJ for a period of two years in connection with its settlement.

Pfizer Inc. will continue to maintain the rigorous anti-corruption systems and innovative compliance program that it voluntarily developed and implemented, including the proactive market reviews and trend analyses it pioneered approximately five years ago. The company already has integrated Wyeth operations and employees into those programs and systems.

“We have worked diligently to strengthen our corporate compliance program worldwide,” said Douglas Lankler, executive vice president and chief compliance and risk officer for Pfizer.

Lankler continued, “We are pleased that the DOJ and SEC today recognized these efforts and our close cooperation. We have instituted rigorous oversight and accounting mechanisms and pioneered a host of new tools designed to maintain compliance and detect problems before they spread.”

Some of Pfizer’s corporate compliance measures include the following:

• Developed and implemented an enhanced set of anti-corruption policies and procedures;
• Designed an innovative, anti-corruption internal audit program used throughout the world to detect potential misconduct;
• Pioneered annual proactive market reviews - a cutting-edge FCPA compliance monitoring tool - which scrutinizes commercial practices in a risk-based sample of non-U.S. markets to ensure compliance with company policies;
• Formed a mergers and acquisitions compliance function designed to support due diligence reviews of complex business transactions and to help ensure the integration of new businesses into Pfizer’s compliance program;
• Established other processes by which it closely monitors its relationships with non-U.S. health care providers and government officials; and
• Implemented global mandatory training for all appropriate colleagues on its anti-corruption program and the need to maintain compliance in the area.


Further Information

Join For Free

Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,900+ scientific posters on ePosters
  • More than 4,200+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Pfizer and Allergan to Combine
This move will create a new global biopharmaceutical leader with best-in-class innovative and established businesses
Tuesday, November 24, 2015
Pfizer to Acquire Hospira for $17B
Companies have into a definitive merger agreement under which Pfizer will acquire Hospira for $90 a share in cash for a total enterprise value of approximately $17 billion.
Thursday, February 05, 2015
Pfizer to Acquire InnoPharma
Under the terms of the agreement, Pfizer will acquire InnoPharma for an upfront cash payment of $225 million, with up to $135 million of contingent milestone payments.
Wednesday, July 16, 2014
Pfizer Confirms Interest in AstraZeneca
Pfizer submitted a preliminary, non-binding indication of interest to the board of directors of AZ in January 2014 regarding a possible merger transaction.
Monday, April 28, 2014
Pfizer Joins Open-Access Medicinal Chemistry Public-Private Collaboration
Company joins the SGC-led public-private collaboration to generate small molecule inhibitors for proteins involved in epigenetic signalling.
Tuesday, June 15, 2010
Pfizer, Washington University Announce Collaboration
Pfizer will provide Washington University scientists access to research data on a large array of its pharmaceutical candidates for indications discovery.
Thursday, May 20, 2010
Pfizer Receives FDA Approval for Geodon® Capsules for the Adjunctive Maintenance Treatment of Bipolar Disorder in Adults
Data show Geodon used as an adjunct to Lithium or Valproate Is effective in the maintenance treatment of Bipolar I disorder.
Monday, November 23, 2009
Pfizer Announces Partnership with Shanghai Institutes for Biological Sciences for Drug Discovery Activities
Pfizer will provide US$500,000 each year over three years to fund health-related fundamental research projects at SIBS.
Thursday, July 30, 2009
Pfizer Launches Global Regenerative Medicine Research Unit
The new independent research unit will provide new generation of regenerative medicines for major medical needs.
Monday, November 17, 2008
Pfizer Report Demonstrates Value of Conducting Virtual Studies of Drug-Drug Interactions
Scientists have used the Simcyp Simulator to predict the extent of drug-drug interactions for maraviroc, which is used in the treatment of HIV.
Thursday, June 12, 2008
Pfizer and Renovis Extend Research Collaboration to Identify Small Molecule VR1 Antagonists
Pfizer will continue to fund the research and preclinical development efforts at Renovis through June 30, 2008, to advance small molecule VR1 antagonists toward clinical development.
Tuesday, April 10, 2007
Scientific News
Spero Therapeutics Announces $30 Million Series B Preferred Financing
Company has announced financing of $30 million to support development of novel therapies to treat gram-negative bacterial infections.
Keeping Tumor Growth at Bay
Engineers at Washington University in St. Louis found a way to keep a cancerous tumor from growing by using nanoparticles of the main ingredient in common antacid tablets.
Future of Medicine Could be Found in a Tiny Crystal Ball
A Drexel University materials scientist has discovered a way to grow a crystal ball in a lab. Not the kind that soothsayers use to predict the future, but a microscopic version that could be used to encapsulate medication in a way that would allow it to deliver its curative payload more effectively inside the body.
Improving Delivery of Poorly Soluble Drugs Using Nanoparticles
A technology that could forever change the delivery of drugs is undergoing evaluation by the Technology Evaluation Consortium™ (TEC). Developed by researchers at Northeastern University, the technology is capable of creating nanoparticle structures that could deliver drugs into the bloodstream orally – despite the fact that they are normally poorly soluble.
Faster Drug Discovery?
Startup develops more cost-effective test for assessing how cells respond to chemicals.
New Mechanism of Antitumor Action Identified
A team of UAB researchers and collaborators from the Catalan biotech company Ability Pharmaceuticals (UAB Research Park), have described a new mechanism of anti-tumour action, identified during the study and development of the new drug ABTL0812.
Nanoparticles Deliver Tumor Suppressors to Damaged Livers
UT Southwestern Medical Center chemists have successfully used synthetic nanoparticles to deliver tumor-suppressing therapies to diseased livers with cancer, an important hurdle scientists have been struggling to conquer.
Experimental Combination Surprises with Anti-HIV Effectiveness
A compound developed to protect the nervous system from HIV surprised researchers by augmenting the effectiveness of an investigational antiretroviral drug beyond anything expected.
A New Type of Anticancer Agent
Success in the development of a ?-tubulin specific inhibitor.
Nanoparticles Proven Effective Against Antibiotic-Resistant “Superbugs”
In the ever-escalating evolutionary battle with drug-resistant bacteria, humans may soon have a leg up thanks to adaptive, light-activated nanotherapy developed by researchers at the University of Colorado Boulder.
SELECTBIO

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,900+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
4,200+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FOR FREE!