MOSCOW, August 8 – RAPSI. After admitting to having paid $2 million in bribes to officials in Russia, Kazakhstan, Croatia, and Bulgaria, and having turned a $7 million profit as a direct result, global pharmaceutical giant Pfizer Inc. and two of its subsidiaries will be paying a total of $60 million in penalties and civil disgorgement payments, according to a statement released Tuesday by the US Department of Justice (DOJ).

Pfizer Inc. subsidiary Pfizer HCP has agreed to pay a $15 million penalty for having violated the Foreign Corrupt Practices Act. Prizer Inc. and subsidiary Wyeth Inc. will pay $26.3 million and $18.8 million respectively in disgorgement of profits to the US Security Exchange Commission (SEC) based on issues with the conduct of their subsidiaries.  Additionally, Pfizer Inc. will be required to periodically report to the DOJ on the successful implementation of initiatives taken to curb corrupt foreign practices on behalf of its subsidiaries. The DOJ noted that these penalties are relatively light due to Pfizer’s ready cooperation with investigations, and the corporation’s willingness to implement reforms.

According to the DOJ statement, Pfizer has made many illicit payments in Russia, Kazakhstan, Croatia, and Bulgaria. These payments were made to hospital administration officials, members of regulatory and purchasing committees, and other healthcare professionals. The subsidiaries sought to improperly influence governmental policy in their favor in the countries at issue by various means, including improper travel and cash payments.

Principle Deputy Assistant Attorney General Mythili Raman of the DOJ’s Criminal Division spoke to the core of the problem: “Pfizer took short cuts to boost its business in several Eurasian countries, bribing government officials in Bulgaria, Croatia, Kazakhstan and Russia to the tune of millions of dollars.”

Washington Field Office Director James W. McJunkin of the Federal Bureau of Investigations (FBI) added, “Corrupt pay-offs to foreign officials in order to secure lucrative contracts creates an inherently uneven marketplace and puts honest companies at a disadvantage… Those that attempt to make these illegal backroom deals to influence contract procurement can expect to be investigated by the FBI and appropriately held responsible for their actions.”