GlaxoSmithKline fined $480 million over China bribery issues

19 September 2014

UK pharma giant GlaxoSmithKline (LSE: GSK) today announced that the Changsha Intermediate People’s Court in Hunan Province, China, ruled that GSK China Investment Co Ltd (GSKCI) has, according to Chinese law, offered money or property to non-government personnel in order to obtain improper commercial gains, and been found guilty of bribing non-government personnel.

The verdict follows investigations initiated by China’s Ministry of Public Security in June 2013. As a result of the Court’s verdict, GSKCI will pay a fine of £297 million ($480 million, 3 billion renminbi at a currency exchange rate of 10.0980) to the Chinese government. This will be funded through existing cash resources. Associated costs and charges related to restructuring will be included in GSK’s third quarter update.

GSK's former China head Mark Reilly will be among those jailed, according to China's Xinhua news agency. In fact, Mr Reilly was given a suspended prison sentence and will be reported, the UK public broadcaster the BBC reported.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK