Question Period Note: Status of Teva Pharmaceuticals Inc. under the Integrity Regime

The Registrar of Ineligibility and Suspension has suspended Teva Pharmaceuticals USA Inc. (Teva USA) from the award of contracts by the Government of Canada pursuant to its Integrity Regime’s Ineligibility and Suspension Policy.

• To help ensure the Government of Canada does business with ethical suppliers, a government-wide Integrity Regime is in place. This Regime holds suppliers accountable for their misconduct, and also encourages them to cooperate with law enforcement and take corrective action
  • Teva Pharmaceuticals USA Inc. was charged with offences in the United States which led to its inclusion on the ineligible and suspended suppliers list pursuant to the Government of Canada’s Integrity Regime
  • Under the Regime, the government may suspend a supplier from contracting, or entering into a real property agreement, with Canada if the supplier has been charged with an offence listed in the policy, or is charged with a similar offence in another jurisdiction
  • The period of suspension will be 18 months from the date of Public Services and Procurement Canada’s determination, subject to extension pending final disposition of the charges

If pressed on what charges led to the suspension:

• The United States Department of Justice charged Teva USA with conspiracy to fix prices, rig bids, and allocate customers for generic drugs contrary to the US Sherman Act
• Teva USA entered into a Deferred Prosecution Agreement with the US Department of Justice with respect to those charges

Teva USA is incorporated in the United States is a subsidiary of Teva Pharmaceuticals Industries Ltd. (TPIL), a global pharmaceutical conglomerate with subsidiaries throughout the world.

On August 21, 2023, Teva USA entered into a Deferred Prosecution Agreement (DPA) with the US Department of Justice. As part of the DPA, Teva USA admitted to the Statement of Facts, which forms the basis of the charges against the company. The compliance provisions of the DPA are effective for a minimum of three years from the date of signing and may be extended until August 21, 2027, if there are issues with Teva USA’s compliance.

Teva USA has been added to the public list of ineligible and suspended suppliers under the Integrity Regime, which is accessible on the department’s website.

• On August 25, 2020, the Antitrust Division of the United States’ Department of Justice charged Teva USA with three counts of conspiracy to fix prices, rig bids, and allocate customers for generic drugs
  • On October 11, 2023, the Registrar of Ineligibility and Suspension issued a Notice of Suspension to Teva USA, suspending the supplier from entering into a contract or real property agreement with the Government of Canada subject to further review after 18 months, pending final disposition of the charges in the United States
  • Under the Integrity Regime, a supplier may be suspended or declared ineligible to do business with the Government if, in the previous 3 years, it, members of its board of directors or its affiliates, have been charged with or convicted of one of the offences listed in the Policy in Canada, or similar offences abroad. A supplier can be suspended for a period of 18 months and subject to extension pending final disposition of the charges