On 4 February 2015, the German Ministry of Justice published a new draft law specifically aimed to combat corruption in the healthcare sector. Key element of the draft legislation will be a newly defined criminal offence that will be inserted as a new Section 299a of the German Criminal Code (StGB). This new criminal offence sanctions active and passive bribery of a wide range of healthcare professionals – not only of medical doctors.

The envisioned new § 299a StGB would significantly sharpen the German anti-corruption laws as far as interactions between life sciences companies with medical doctors and other healthcare professionals are concerned. The criminal culpability would apply to both the healthcare professional that accepts a bribe and the company representative that pays a bribe.
Continue Reading Germany Headed to Stricter Criminal Laws Against “Corruption In The Healthcare Sector”

This post originally appeared on our sister blog, InsideMedicalDevices.

Just days before the UK Parliament broke up for its February recess, the introduction of deferred prosecution agreements (“DPAs”) in the UK came a step closer to realization when the Crime and Courts Bill completed its Committee Stage in the House of Commons.  The anticipated introduction of DPAs in the UK should be of particular interest to medical device companies that are incorporated in – or otherwise carry on business in – the UK.  Their introduction is expected to lead to an uptick in major enforcement actions in the years ahead.

How UK DPAs Will Work

Under the proposed legislation, the UK Serious Fraud Office (“SFO”) and Crown Prosecution Service (“CPS”) would be given the authority to use DPAs to resolve a limited list of economic crimes, including bribery, fraud and money laundering cases.  Organizations entering into DPAs would be required publicly to admit certain facts indicating wrongdoing and to comply with rigorous conditions (e.g., the payment of a financial penalty, implementation or updating of a compliance program, payment of compensation to any victim(s), and disgorgement of profits).  In return, the SFO/CPS would agree to suspend criminal charges and, crucially for medical device companies, the organization subject to the DPA would not face mandatory debarment from competing for potentially lucrative government contracts.
Continue Reading Deferred Prosecution Agreements in the UK: One Step Closer to the Introduction of a New Enforcement Tool in Bribery and Corruption Cases

Article originally published in PLC Life Sciences Handbook 2012

M&A in the life sciences sector has remained robust, driven by factors such as:

  • „„ The need to replenish shrinking product pipelines.
  • „„ The need to maintain revenues as patents on top-selling
  • products expire.
  • „„ The strategic diversification of business lines.
  • „„ Expansion into emerging markets.