Shoring up compliance and disclosure procedures is the best way for pharmaceutical companies to avoid brushes with regulatory agencies, according to the U.S. Securities and Exchange Commission (SEC).
Andrew Ceresney, the SEC’s top enforcement director, delivered the message to attendees at the recent Annual Pharmaceutical Compliance Congress.
Companies need to accurately report their dealings with the U.S. Federal Drug Administration (FDA) to ensure potential investors get the information they need, Ceresney said.
Drug companies also run higher risks of violating the Foreign Corrupt Practices Act due to the nature of their business abroad, Ceresney pointed out. Some of the issues with which the SEC has dealt include bribery, payments for prescriptions and bribes disguised as charitable contributions.