Sanofi Charged With FCPA Violations
Sanofi agreed to pay over $25 million to resolve SEC charges that its Kazakhstan and Middle East subsidiaries made corrupt payments—including kickbacks coded as 'marzipans' and pay-to-prescribe schemes—to government officials and healthcare providers to win contracts and boost drug sales, violating securities laws without admitting guilt.
Sanofi, the Paris-based pharmaceutical company, agreed to pay $25.2 million to settle SEC charges that its subsidiaries in Kazakhstan and the Middle East engaged in bribery to secure government tenders and increase prescriptions of its drugs. In Kazakhstan, distributors funneled kickbacks disguised as 'marzipans' in internal spreadsheets to officials, while in the Middle East, pay-to-prescribe schemes incentivized healthcare providers. Sanofi violated the books and records and internal accounting controls provisions of the federal securities laws, and without admitting or denying the findings, accepted a cease-and-desist order with $17.5 million in disgorgement, $2.7 million in prejudgment interest, and a $5 million civil penalty.
Sanofi, the Paris-based pharmaceutical company, agreed to pay more than $25 million to resolve SEC charges that its subsidiaries in Kazakhstan and the Middle East engaged in widespread bribery to win public tenders and increase prescriptions of its products. In Kazakhstan, distributors were used to generate kickbacks that were systematically tracked in internal spreadsheets under the coded term 'marzipans' to bribe government procurement officials. In the Middle East, pay-to-prescribe schemes were implemented to induce healthcare providers to favor Sanofi’s drugs. These actions violated the books and records and internal accounting controls provisions of the federal securities laws. Sanofi neither admitted nor denied the allegations but accepted a cease-and-desist order, paying $17.5 million in disgorgement, $2.7 million in prejudgment interest, and a $5 million civil penalty. The SEC emphasized that bribery in pharmaceutical sales remains a persistent issue despite prior enforcement actions, underscoring the industry’s heightened risk profile. The investigation received significant assistance from the Department of Justice’s Fraud Section, the FBI, and France’s Autorité des marchés financiers.
Exhibits & Attached Documents (1)
Extracted insights
- $25.00M $25 million $10M–$100M
- $17.50M $17.5 million $10M–$100M
- $5.00M $5 million $1M–$10M
- $2.70M $2.7 million $1M–$10M
- person bribe payments
- person charles cain
- person corrupt payments
- Sanofi agreed to pay $25 million
- Sanofi resolved charges corrupt payments
- Sanofi made bribe payments
- Sanofi violated books and records provisions
- Sanofi agreedreed to pay $17.5 million in disgorgement
- Sanofi agreed to pay $2.7 million in prejudgment interest
- Sanofi agreed to pay $5 million civil penalty
- Sanofi agreed to cease-and-desist order
- Charles Cain said bribery remains a significant problem
The Securities and Exchange Commission today announced that Paris-based pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve charges that its Kazakhstan and the Middle East subsidiaries made corrupt payments to win business. According to the SEC’s order, the schemes spanned multiple countries and involved bribe payments to government procurement officials and healthcare providers in order to be awarded tenders and to increase prescriptions of its products. In Kazakhstan, distributors were used as part of a kickback scheme to generate funds from which bribes were paid to officials to ensure that Sanofi was awarded tenders at public institutions. The kickbacks were tracked in internal spreadsheets where they were coded as “marzipans.” In the Middle East, various pay-to-prescribe schemes were used to induce healthcare providers to increase their prescriptions of Sanofi products. “Bribery in connection with pharmaceutical sales remains as a significant problem despite numerous prior enforcement actions involving the industry and life sciences more generally,” said Charles Cain, FCPA Unit Chief, SEC Enforcement Division. “While bribery risk can impact any industry, this matter illustrates that more work needs to be done to address the particular risks posed in the pharmaceutical industry.” The SEC’s order finds that Sanofi violated the books and records and internal accounting controls provisions of the federal securities laws. Without admitting or denying the findings, Sanofi agreed to a cease-and-desist order and to pay $17.5 million in disgorgement, $2.7 million in prejudgment interest, and a civil penalty of $5 million. The SEC appreciates the assistance of Fraud Section of the Department of Justice, the Federal Bureau of Investigation, and the Autorité des marchés financiers in France.
The Securities and Exchange Commission today announced that Paris-based pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve charges that its Kazakhstan and the Middle East subsidiaries made corrupt payments to win business. According to the SEC’s order, the schemes spanned multiple countries and involved bribe payments to government procurement officials and healthcare providers in order to be awarded tenders and to increase prescriptions of its products. In Kazakhstan, distributors were used as part of a kickback scheme to generate funds from which bribes were paid to officials to ensure that Sanofi was awarded tenders at public institutions. The kickbacks were tracked in internal spreadsheets where they were coded as “marzipans.” In the Middle East, various pay-to-prescribe schemes were used to induce healthcare providers to increase their prescriptions of Sanofi products. “Bribery in connection with pharmaceutical sales remains as a significant problem despite numerous prior enforcement actions involving the industry and life sciences more generally,” said Charles Cain, FCPA Unit Chief, SEC Enforcement Division. “While bribery risk can impact any industry, this matter illustrates that more work needs to be done to address the particular risks posed in the pharmaceutical industry.” The SEC’s order finds that Sanofi violated the books and records and internal accounting controls provisions of the federal securities laws. Without admitting or denying the findings, Sanofi agreed to a cease-and-desist order and to pay $17.5 million in disgorgement, $2.7 million in prejudgment interest, and a civil penalty of $5 million. The SEC appreciates the assistance of Fraud Section of the Department of Justice, the Federal Bureau of Investigation, and the Autorité des marchés financiers in France.