China Briefing - March 2012 (April 13, 2012)


Pharmaceuticals, Medical Devices, Health Care & Life Sciences


•American Medical Device Maker Accused of Bribery to Doctors in China and other Countries (Xinhua Net 2012-03-27) – March 27, 2012

On March 26, 2012, the United States Securities and Exchange Commission (“SEC”) accused an American orthopedic device maker of bribery in foreign countries and of violating the Foreign Corruption Practice Act (“FCPA”). According to SEC allegations, from 2000 to August 2008, the company’s subsidiaries and distributors bribed doctors at public hospitals in Argentina, Brazil and China for the purpose of obtaining or retaining business. In addition to cash bribes, the company was accused of paying illegitimate international travel expenses for Chinese doctors. To settle this charge, the company agreed to pay $17.28 million in criminal penalty to DOJ and $5.4 million in disgorgement of profits and pre-judgment interest to SEC. Recently, U.S. regulatory authorities have pushed aggressively for the enforcement of the FCPA. Last year, well-known drug and high-tech companies were accused of violation of the FCPA by the SEC.

•Qiagen Inks HPV Screening Deal with China's KingMed Diagnostics (GenomeWeb 2012-03-08)

Qiagen has signed a co-marketing deal in China with KingMed Diagnostics aimed at expanding access to its digene HPV test. KingMed is China's largest independent laboratory network, according to Qiagen, and under the agreement will serve as a centralized lab. This will allow smaller hospitals and those in less-populated areas to offer the HPV test and send samples to KingMed for processing and analysis. Victor Shi, Asia Pacific president of Qiagen, said in a statement that the agreement will bring the test to regions where it is most needed. "Qiagen and KingMed Diagnostics have had a long and fruitful collaboration which we are now significantly expanding," he added.

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