Lilly Is Fined By Mexico For Collusion
3 CommentsBy Ed Silverman // February 24th, 2010 // 7:46 am
Mexico’s antitrust watchdog fined Lilly and three Mexican drugmakers for colluding to inflate prices in government tenders for medicine. The drugmakers allegedly took turns placing winning bids to buy insulin from 2003 to 2006, eliminating competition and ensuring artificially high prices, Reuters writes. A Lilly spokeswoman denied the charges and plans to appeal.
“The companies that have been fined conspired for years to make badly needed medicine artificially expensive,” commission head Eduardo Perez-Motta said in a statement. The drugmakers, as well as unit of Baxter International, were each fined $1.7 million, the maximum allowed prior to 2006, when Mexico’s competition laws were beefed up, Reuters adds.
Separately, the US Department of Justice and the Securities and Exchange Commission expanded a probe into Lilly’s compliance with the Foreign Corrupt Practices Act, which prohibits bribery of foreign officials. The SEC notified Lilly in 2003 it was investigating whether overseas units of various drugmakers in Poland violated the law; the probe is now focusing on other countries (see page 15 of this SEC filing). Recently, the head of the Justice Department’s Criminal Division warned drugmakers there will be more criminal enforcement against interactions with foreign officials (see here).
Jack Friday
http://pharmagossip.blogspot.com/2010/02/lolpharma-contd_1492.html
My take!
David, Health Blogger
It feels like no Phrama company is free from allegations of corrupt business practice.
What happened to the goal of improving people’s lives through better health?
Matthew Holford
Ah, that would be Eli Lilly, purveyor of narcotics to the “intelligence” services, I take it?
Now, seeing as bribery of foreign officials is a criminal offence, Lilly’s actions come within the remit of Anti-Money Laundering legislation (as soon as a financial benefit is gained from a criminal act, one is laundering the money, when one disposes of it). I don’t know what the US domestic legislation is that provides for it, but this was all agreed pretty much unilaterally, when the Financial Action Task Force drew up its recommendations to counter money laundering.
What the betting that Eli doesn’t get pursued? Money laundering is a fucking serious offence - in the UK, the maximum penalty is 13 years in clink, or it was when I was looking at the Proceeds of Crime Act, anyway.
Matt