Novartis reach US settlement over Lucentis-linked bribery claims

Swiss pharma giant Novartis (NOVN: VX) late yesterday revealed that it has reached settlements with the US Department of Justice (DoJ) and the US Securities and Exchange Commission (SEC) resolving all Foreign Corrupt Practices Act (FCPA) investigations into historical conduct by the company and its subsidiaries.

As part of the settlements, Novartis and certain of its current and former subsidiaries will pay $233.9 million to the DoJ and $112.8 million to the SEC.

To resolve the DOJ investigation, Novartis Hellas has entered into a deferred prosecution agreement relating to inappropriate economic benefits provided to Greek healthcare professionals from 2012 to 2015 in connection with the ophthalmology product Lucentis (ranibizumab injection). The Novartis Hellas DPA also covers books and records issues pertaining to the Lucentis conduct and to conduct related to a 2009 epidemiological study. Lucentis generated sales of over $2 billion for Novartis last year. It is also sold by Roche (ROG: SIX) in the USA, where Novartis is not licensed to market the drug.