May 11, 2009 / 6:44 PM / 11 years ago

UPDATE 1-Novo Nordisk to pay $18 mln to settle US probes

* U.S. SEC, Justice Dept each to receive $9 million

* Novo Nordisk says investigations complete

NEW YORK, May 11 (Reuters) - Denmark-based Novo Nordisk (NOVOb.CO), a leading maker of diabetes care products, said on Monday it has agreed to pay $18 million to settle U.S. investigations into the company’s sales to Iraq as part of the United Nations’ oil for food program.

Novo said it has entered into a consent agreement with the U.S. Securities and Exchange Commission and a deferred prosecution agreement with the U.S. Department of Justice to resolve the probes of sales that took place from 2000 to 2003 as part of the U.N. program.

Under the terms of the settlements, Novo Nordisk will pay $9 million in fines, disgorgement of past profits, and interest to the SEC. It will pay another $9 million penalty to the Justice Department.

The company said it cooperated fully with the investigations and that they are now concluded.

“This was a regrettable situation from which we have a learned a lot, and which has led us to implement a number of measures to protect against a similar situation,” Novo Nordisk Chief Executive Lars Rebien Sorensen said in a statement.

Novo Nordisk shares closed up 2 percent in Copenhagen. (Reporting by Bill Berkrot; Editing by Steve Orlofsky)

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