Teva sets aside $ 520 million to settle corruption charges

In its Q3 report, Israeli pharmaceutical company Teva announced it is in advanced negotiations with the US Department of Justice and the Securities and Exchange Commission to settle claims regarding violations of the US Foreign Corrupt Practices Act (FCPA). The case involves episodes in Russia, Mexico, and Ukraine between 2007 and 2013. The company has reserved $520 million for the settlement purposes, according to the report.

As stated in the company's announcement, the corruption allegations do not concern Teva's business in the United States. The investigation into the company's violation of the FCPA began in 2012. Teva has taken a number of steps to rectify the situation, including terminating "questionable" business relationships, dismissing certain employees, and winding down operations in some countries, the report states.

In Q3 2016, Teva's revenue amounted to $5.6 billion, which is 15% more than in the same period in 2015. The increase was due to the inclusion of $887 million in revenue from the generic company Actavis, which Teva acquired from Allergan in early August 2016. Excluding foreign exchange rate fluctuations, Teva's revenue grew by 19%. Teva's net profit in Q3 2016 was $412 million, four times higher than the figure for the same period in 2015, which was $103 million.

Teva has revised its annual revenue forecast downward from $22–22.5 billion to $21.6–21.9 billion. In November, it became known that the Mexican pharmaceutical plant Rimsa, purchased by Teva for $2.3 billion, was shut down at the request of the local pharmaceutical market regulator due to numerous violations committed by its previous owners, the Espinosa brothers.

Teva Pharmaceutical Industries Ltd is a major international manufacturer of original and generic drugs. The company's product portfolio includes over a thousand molecules. Its headquarters is located in Israel. Teva's products are sold in more than 80 countries, and the company employs 58,000 people. Teva's revenue in 2015 was $19.7 billion.