(Image Source: WBRZ)

BY JIM FLINK

ANCHOR ANA COMPAIN-ROMERO

Drug giant Pfizer has reportedly agreed to pony up $60 million by the end of the year to settle with the Justice Department over foreign bribery allegations.

Those allegations after the company allegedly tried to buy influence in overseas markets.

The Wall Street Journal broke the story.

“Pfizer and rival Johnson & Johnson ... provided U.S. authorities with information about industry practices that could violate the Foreign Corrupt Practices Act … Pfizer's and Johnson & Johnson's cooperation contributed to a government investigation that has affected several major drug companies, including Merck & Co., AstraZeneca PLC, Bristol-Myers Squibb Co. and GlaxoSmithKline PLC...”

The Journal’s Joe Palazzolo says, this is an investigation which goes back years, just now coming to a head.

“Pfizer comes through the door in 2004.  Says to the justice department, ‘we have some issues here.  Maybe can you take a look?’  That keeps going.  Johnson and Johnson comes in a couple years later and says ‘Hey, we have some stuff too.’  All this forms the foundation for a much wider sweep.”

J-and-J already settled with the DOJ and SEC.

The Washington Post notes... “In April ... Johnson & Johnson agreed to pay $70 million to settle civil and criminal charges of bribing doctors in Europe and paying kickbacks to the Iraqi government to illegally obtain business. Terms of the deal included J&J putting in place a program to make sure it complies with anti-bribery laws across its businesses.” (The Washington Post)

Now, the Feds are requiring compliance programs for all drug companies deemed to have been involved.

Part of the problem, critics note, is what to define as corrupt practices.

The Street reports...

“Federal officials have determined that the Foreign Corrupt Practices Act bans drug companies from paying doctors to encourage them to prescribe medicines, if the doctors work for foreign government-run hospitals...”

According to the site domain B, Eli Lilly and Baxter have also received word they are both under scrutiny by the Justice Department and the SEC.