Novartis subject to Italian investigation over alleged vaccine fraud

Swiss drug maker Novartis (NOVN: VX) is the subject of a new investigation by Italian authorities. The company’s offices in Italy were searched by Italian authorities looking for pricing information on two influenza vaccines.

Italian news service ANSA has reported that prosecutors in Siena believe that Novartis’ vaccine division defrauded the Italian health ministry out of 2.7 million euros ($3.6 million) in 2012 by inflating the price of a component of its H1N1 swine flu vaccine. The division’s chief executive, Francesco Gulli, is under investigation and two of Novartis’ Italian plants were searched on Friday, it added. The authorities are accusing the company of failing to have precautions in place to prevent fraud claims. ANSA added that the investigation is connected to another probe into suspected tax fraud at Novartis, which could be worth more than 16 million euros ($21.7 million).

Novartis told The Pharma Letter: "Novartis is aware of an ongoing visit by Italian authorities to our sites in Siena and Origgio, Italy. Novartis is committed to high standards of ethical business conduct and regulatory compliance in all aspects of its work. We are cooperating fully with the investigating authorities."