Pharma company GlaxoSmithKline has fired many of its staff in China over allegations of bribes and other corruption.The company employs around 7,000 people in China.
The dismissals followed accusations that GSK funneled nearly $400 million to Chinese doctors and officials to encourage them to use its medicines. The close scrutiny of Britain’s biggest drug firm was part of a tightening of regulation on foreign firms operating in China. Continue reading
GlaxoSmithKline, one of the largest pharma companies in the world, is investigating whistleblower allegations that its Irag subsidiary may have hired government employed doctors and pharmacists in the country, as paid sales reps to boost profits from sales. Continue reading
New and expanding allegations of corporate bribes in China have the Securities and Exchange Commission staff busy investigating possible violations of the Foreign Corrupt Practices Act and other laws and much of the information is coming from insider whistleblowers.
Chinese authorities announced an investigation of French drug manufacturer Sanofi SA over a whistleblower report accusing the company of bribing over 503 physicians in 79 hospitals in Beijing.Shanhai, Hangdou and a sales rep from Novartis named Li Li says she was asked to bribe doctors to meet her sales quota. Danish Drug makers Novo Nordisk and Lundbeck are also being visited by Chinese regulators.
Federal authorities have opened a bribery investigation into whether JPMorgan Chase hired the children of powerful Chinese officials to help the bank win lucrative business deals. This information too was apparently revealed by a whistleblower.
According to a BBC report, bribes are routinely paid by big pharmaceutical companies doing business in China and the new investigation of the GlaxosmithKline for alleged bribery has heightened international attention to the issue.
The BBC interviewed five drug salesman for foreign companies who told the reporters that their firms all paid bribes in order to increase sales in China.
One of the salesman said his company paid $1000 to get its product back on the shelves at a hospital.
Several pharmaceutical companies including Merck, Medtronic, Zimmer and Astra Zeneca are reportedly under investigations for paying foreign bribes in violation of The Foreign Corrupt Practices Act (FCPA). Eli Lilly this week discloed that it is in discussions with the SEC to try to resolve an investigation as to the compliance by Polish subsidiaries of certain pharma companies. with the FCPA.AstraZeneca has received inquiries from the US Department of Justice and the SEC in connection with an investigation into FCPA issues in several countries. J & J recently settled a FCPA charge. More are expected.