GSK adopts reforms to revamp China business
UK pharma major GlaxoSmithKline (LSE: GSK) has cut 40% of its workforce in China as part of the measures to revamp its operations following the infamous bribery scandal.
The drugmaker has witnessed a plunge in sales in China, after the company was found guilty of bribing non-government personnel and issued a fine of £297 million ($448 million). Sales dropped from £759 million in 2012 to £585 million in 2013 and were flat last year.
Hervé Gisserot, the GlaxoSmithKline's general manager in China, has warned that other drugmakers risked punishment by Chinese authorities if they failed to follow the company’s lead for reforms. Mr Gisserot said: "I cannot believe [GlaxoSmithKline] is a one off. This anticorruption [drive] will continue. I hope others will learn before it is too late."
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