Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-19852
Name of Prosecuting Attorneys:
Christina McGill, SEC Headquarters
Brittany Hamelers, SEC Headquarters
Timothy England, SEC Headquarters
Melissa Hodgman, SEC Headquarters
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Alexion Pharmaceuticals, Inc., headquartered in Boston, Massachusetts, was a global biopharmaceutical company that developed and sold drugs for patients with life-threatening rare and ultra-rare diseases. Alexion served patients in approximately 50 countries and employed approximately 3,000 people worldwide. Alexion international operations were conducted through various subsidiaries including Alexion Ilac Ticaret Limited Sirketi (“Alexion Turkey”), Alexion Pharma OOO (“Alexion Russia”), Alexion Pharma Brazil (“Alexion Brazil”), and Alexion Pharma Colombia SAS (“Alexion Colombia”), all wholly-owned subsidiaries whose books and records were consolidated into Alexion’s financial statements.
According to the documents in this case, from 2010 to 2015, Alexion Turkey paid Turkish government officials to improperly influence them to approve patient prescriptions and provide other favorable regulatory treatment for Soliris, and from 2011 to 2015, Alexion Russia made similar improper payments to Russian government health care officials to favorably influence the regulatory treatment of and the budget allocated to Soliris as well as to increase the number of approved Soliris prescriptions. Further, the SEC found that Alexion’s subsidiaries in Brazil and Colombia failed to maintain accurate books and records, including by creating or directing third parties to create inaccurate financial records concerning payments to patient advocacy organizations.
In a settled administrative proceeding initiated on July 2, 2020, the SEC ordered Alexion to cease and desist violations of the books and records and internal controls provisions of the FCPA. Under the terms of the settlement, Alexion agreed to pay a civil fine of $3,500,000 and disgorgement of $14,210,194 plus prejudgment interest of $3,766,337. The SEC noted Alexion's cooperation and remediation.
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