The Securities and Exchange Commission declared today that pharmaceutical company Alexion Pharmaceutical, Inc. [NASDAQ: ALXN] has accepted that it will pay $21 million to resolve the SEC charges. Alexion has violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).
According to charges, two subsidiaries of Alexion Inc. has paid an amount to foreign government officials to secure favorable treatment for its drug, Soliris. As per the charges, Alexion Russia has made a payment to Russian government healthcare officials to gain favor for its drug Soliris from 2011 to 2015.
Likewise, the pharmaceutical company’s Turkish subsidiary has also made improper payments to Turkish officials to secure improper influence for their drug Soliris from 2010 to 2015.
Alexion subsidiaries had kept the false record of these illegal payments and its internal accounting controls failed to detect. Moreover, Alexion subsidiaries in Colombia and Brazil also failed to maintain accounting records. These subsidiaries also involved in the creation of false financial records concerning payments to patient advocacy organizations.
Shares of Alexion Inc. soared 0.72% at +0.81 during the trading session of Thursday. It has a day low range of 112.88 and a day high range of 114.49. Its return on investment (ROI) is 16.90%, return on equity (ROE) is 21.80%, and return on assets (ROA) is 14.60%.
Alexion has a gross margin of 92.10%, a profit margin of 44.80%, and an operating margin of 43.40%. The pharmaceutical firm had a trading volume of 151.95K as compared to the average volume of roughly 2.28 million.
Without denying and admitting the charges, Alexion Inc will pay $14,210,194 in disgorgement, $3,766,337 in prejudgment interest, and a $3.5 million penalty.