PFIZER, THE DRUG COMPANY, GOT BUSTED FOR BRIBING FOREIGN DOCTORS

Sarah,

Pfizer is a large pharmaceutical company.  Recently, Pfizer reached a $45,000,000 settlement with the Securities and Exchange Commission to resolve charges of bribing doctors overseas to write prescriptions for Pfizer medicines.

The Law:

In 1977, the United States passed the Foreign Corrupt Practices Act.  This law prohibits companies from bribing foreign officials.

The Offense:

The offenses are pretty egregious and were committed in countries around the globe.  In China, a Pfizer subsidiary created a “point program” in which points were given each time a doctor prescribed Pfizer drugs.  The points could then be exchanged for cellphones or tea sets.  I call this the Chuck E. Cheese business model.  In other parts of China, Indonesia, and Pakistan, Pfizer dispensed with formalities and made cash payments to government doctors.

In case you were wondering, other drug companies are doing this as well and are currently cooperating with investigations.

Bottom line: Drug companies do what they want.

Source: “Pfizer Settles U.S. Charges Of Bribing Doctors Abroad." New York Times, 8/8/2012