SciClone Pharmaceuticals Inc. said it has reserved $2 million for penalties related to an ongoing Foreign Corrupt Practices Act probe.
The California-based phrama said in its annual report last week that a settlement of that size was “probable.” But it didn’t not have any prediction about the exact fines that could be imposed or the timing of a resolution.
The DOJ and SEC are investigating sales and marketing expenses at SciClone’s China subsidiary, NovaMed Pharmaceuticals (Shanghai) Co. Ltd.
SciClone received subpoenas from the SEC in late 2010 and again in late 2012. After an internal investigation, the company self-reported its findings to the feds in May 2011.
SciClone said it found a “lack of controls to ensure that third-party gifts, travel and entertainment expenses, and sponsorships of certain conferences and symposia complied with the law.”
Julie DiMauro is the executive editor of FCPA Blog and can be reached here.