Novartis to settle China bribe case for US$25m

Hong Kong

NOVARTIS AG agreed to pay US$25 million to settle a US Securities and Exchange Commission case that claimed the Swiss drugmaker violated the Foreign Corrupt Practices Act by paying bribes to health professionals in China to increase sales from 2009 to 2013.

The SEC issued a cease-and-desist order late on Wednesday saying Novartis submitted a settlement offer and the agency has accepted it. The company's payment includes US$2 million in a civil penalty and US$1.47 million in interest, according to the order posted on the SEC's website. Novartis didn't admit or deny the SEC's claims.