Novartis Faces Investigation For Alleged Bribery In Greece
February 09 2018 - 7:22PM
Dow Jones News
By Nektaria Stamouli and Noemie Bisserbe
Pharmaceutical giant Novartis AG has come under investigation in
Greece on allegations that the Swiss group bribed officials and
doctors to fix drug prices and boost its sales to public
hospitals.
Greek prosecutors published a report Friday alleging that
Novartis officials paid tens of millions of euros in bribes to
doctors and politicians in order to fix the price for its drugs at
artificially high prices. The report alleges that the illegal
arrangement cost the Greek state billions of euros.
According to the prosecutors, the activity allegedly occurred
between 2006 and 2015, covering the period during which Greece was
bailed out and was living under tight scrutiny of its international
creditors.
Deputy Justice Minister Dimitris Papangelopoulos described as
"the biggest scandal since the establishment of the Greek
state."
A Novartis spokesman said that "If any wrongdoing is found we
will take fast and decisive action and do everything possible to
prevent future misconduct." He added that the company has been
cooperating with Greek authorities for more than a year.
Neither Novartis nor any of its current associates have been
indicted, said the company, which is also conducting its own
internal probe.
The Greek prosecutors have named 10 officials among those
implicated in the scandal. They include two former prime ministers,
Antonis Samaras and Panagiotis Pikrammenos, as well as the European
Union's current migration commissioner, Dimitris Avramopoulos. All
the officials denied any wrongdoing.
In October 2015, the Basel-based drug maker said it had agreed
to pay $390 million as part of a settlement with the U.S. Justice
Department regarding claims that the company induced specialty
pharmacies to boost prescriptions for Novartis drugs by paying
kickbacks in the form of rebates.
Months later, it agreed to pay more than $25 million to the U.S.
government to settle charges that it bribed healthcare
professionals in China to boost sales.
In August 2016, prosecutors indicted a former chief executive of
the South Korean unit of Novartis and five other former and current
managers over allegations they illegally paid doctors 2.6 billion
won ($2.4 million) in return for prescribing the company's drugs.
Novartis said it was implementing a remediation plan in the country
based on the findings of their own internal investigation.
The Greek prosecutors' case was submitted earlier this week to
the Greek parliament, which will decide whether the politicians'
immunity should be lifted in order for them to face
prosecution.
Write to Nektaria Stamouli at nektaria.stamouli@wsj.com and
Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
February 09, 2018 19:07 ET (00:07 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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