b'Section 13 violations and pay the SEC disgorgement ofof the FCPA. The scheme began in 2007 and continued $19.75 million and prejudgment interest of $4.75 million.through 2014. In total, the DOJ estimates Alcon to have realized approximately $8.5 million in improper profits. United States v. Alcon Pte Ltd, No. 20-CR- DOJ Resolution00539 (D.N.J.) and United States v. NovartisDOJ entered into a DPA with Novartis Greece through Hellas S.A.C.I., No. 20-CR-00538 (D.N.J.) which the company agreed to pay more than $225 million in penalties for violations of the FCPA. Novartis On June 25, 2020, the SEC and DOJ jointly announcedGreece fully cooperated with the DOJ investigation they had reached resolutions with global pharmaceu- and took remedial actions and, in exchange, received tical giant, Novartis AG (Novartis) and its subsidiaries,a 25% reduction off the mid-point in the Sentencing Novartis Hellas S.A.C.I. (Novartis Greece) and AlconGuidelines range. The DOJ press release notes that Pte Ltd. (Alcon).while Novartis Greece fully cooperated and reme-Novartis Greece was accused of using bribes todiated, Novartis was previously involved in similar increase sales of a Novartis-branded prescription drug,conduct for which it reached a resolution with the SEC Lucentis, in state-owned and state-controlled hospitalsin March 2016. and clinics in Greece (Greek State HCPs). Specifically,The DOJ executed a separate DPA with Alcon, in Novartis Greece admitted that between 2012 and 2015,which Alcon agreed to pay a total criminal penalty of it sponsored certain Greek State HCPs that it had deter- approximately $8.9 million. In total, the DOJ estimates mined had a high propensity to prescribe Lucentis toAlcon to have realized approximately $8.5 million in attend international medical congressesincludingimproper profits. The criminal penalty for Alcon reflects events held in the United States. The average cost ofa 25% reduction off the bottom of the U.S. Sentencing sponsorship often exceeded $6,000.Guidelines fine range because of Alcons full coopera-In addition, Novartis Greece admitted to falselytion with the DOJ investigation. recording as legitimate advising and promotionalBoth Novartis Greece and Alcon agreed to continue to expenses certain corrupt payments related to ancooperate with the U.S. government in any ongoing or epidemiological study intended to increase sales offuture criminal investigations concerning the compa-other Novartis drugs. On paper, the study was struc- nies, its executives, employees, or agents. Accordingly, tured such that Greek HCPs would provide Novartisadditional indictments arising out of these schemes Greece with data and case reports for patients using amay be forthcoming. Novartis-branded hypertension drug in exchange for direct payments. In reality, however, many HCPs wereSEC Resolutionled to believe by Novartis Greece brand managers thatSECs enforcement action was against Novartis, the they were being paid per prescription written for theultimate parent company that is traded on the New hypertension drug. The profits from sales of LucentisYork Stock Exchange. The SECs enforcement action in Greece and sales of the Novartis-branded drugsincorporated both unlawful schemes that underpinned related to the epidemiological study approximated atthe DOJ action. Novartis agreed to pay $92.3 million least $71.48 million. in disgorgement, and prejudgment interest of $20.5 Separately another former Novartis subsidiary, Alcon,million, to the SEC. was accused of knowingly and willfully conspiring with Novartis to maintain false books, records, andIn the Matter of Alexion Pharmaceuticals, accounts in connection with a scheme to bribe healthInc., No. 3-19852care providers in state-owned and state-controlled hospitals in Vietnam. Specifically, Alcon employeesOn July 2, 2020, the SEC announced that it had admitted to bribing a third-party distributor to increaseresolved FCPA charges with Alexion Pharmaceuticals, sales of intraocular lenses through a consultancyInc. (Alexion), a Boston-based, publicly traded phar-program whereby the third-party distributor mademaceutical company. Alexion agreed to pay more than corrupt payments to healthcare employees and Alcon$21 million for violating the FCPAs internal accounting, would reimburse the distributor for a percentage ofand books and records provisions in connection with those payments. With approval of Novartis employees,Alexions primary drug, Soliris. Previously, in May Alcons offices in Vietnam reimbursed the distributor2020, Alexion announced that the DOJ had concluded for improper payments totaling $180,000 in 2010its investigation into the same bribery conduct and alone, and another $200,000 in 2013 and 2014. Thedeclined to prosecute.employees of state-owned healthcare centers wereAlexions settlement resolved the SECs entire inves-determined to be foreign officials within the meaningtigation into Alexions conduct in various countries 15'