More details emerge of GSK China bribery allegations

The extent of the alleged bribery and tax-related violations by UK pharma major GlaxoSmithKline (LSE: GSK) in China has been revealed by China’s Ministry of Public Security, according to China’s state news agency Xinhua.

In an investigation which has been ongoing since the start of July, GSK employees are suspected of offering bribes to doctors, asking them to prescribe more drugs in order to grow sales volume, and pushing up drug prices. It is even claimed some employees used sexual favors to advance business.

Xinhua reports claims from one regional sales manager that GSK sales people received “special training not only on information of specific drugs, but also sales skills and methods, especially how to maintain relations with hospitals and doctors.” It adds that pharmaceutical representatives were given 10,000 renminbi ($1,667) and details of doctors from around the country. They would invite doctors to join academic conferences to help the practitioners increase influence in their fields.