Investigation on-going as claims GSK staff may have broken Chinese law

22 July 2013

Sales staff at UK pharma major GlaxoSmithKline (LSE: GSK) in China may have broken Chinese law, the company has admitted, as the investigation into bribery allegations continued.

Last week GSK sent Abbas Hussain, president of emerging markets and Asia Pacific, and two other executives to China to investigate. Mr Hussain met with Chinese authorities over the weekend, according to a GSK statement issued today, which 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. We have zero tolerance for any behavior of this nature."

The statement added that: “In addition, savings made as a result of proposed changes to our operational model will be passed on in the form of price reductions, ensuring our medicines are more affordable to Chinese patients."

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