Ethical Performance
inside intelligence for responsible business


GSK China executives "appear to have broken" law

August 2013

CHINA: GlaxoSmithKline (GSK), Britain’s largest pharmaceuticals company, admitted some of its executives appeared to have broken the law, as bribery investigations were conducted.

Abbas Hussain, the group’s head of emerging markets, said: “Certain senior executives of GSK China, who know our systems well, appear to have acted outside of our processes and controls, which breaches Chinese law.”

Investigators claim that over six years more than £200m ($307m, €233m) were funnelled through travel agents and consultancies to bribe doctors, hospitals and health foundations with kickbacks to boost sales and raise its prices.

Hussain said GSK had now made operational changes enabling it to cut prices.

Last year GSK dismissed 312 staff, including 56 in China, for policy violations.
Before GSK’s admission finance chief Steve Nechelput was banned from leaving China and four other senior executives were detained.

China’s drugs authority now threatens to “crack down severely” on fake medications, forgery and bribery. GSK and other foreign drugs companies are expected to be targeted.  

GlaxoSmithKline | Asia | Corruption

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