GlaxoSmithkline fined $500mn by China in graft probe

GlaxoSmithkline fined $500mn by China in graft probe

Friday, September 19, 2014 9:26 am


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A Chinese court on Friday fined British drugmaker GlaxoSmithKline 3.0 billion yuan ($490 million) following a nearly year-long bribery probe, state media said.

The fine, levied by the Changsha Intermediate People’s Court in central China, after a closed hearing in central China’s Hunan province, was the largest such penalty ever, China’s official Xinhua news agency reported.

Chinese authorities had accused GSK employees of bribing hospitals, doctors and health institutions to gain billions of dollars in illegal revenue.

The Changsha Intermediate People’s Court sentenced former chief Mark Reilly and an unspecified number of other GSK officials in a closed hearing, Xinhua reported.

Chinese police had accused Reilly of ordering employees to bribe hospitals, doctors and health institutions to gain billions of dollars in revenue.

The drugmaker was also fined 3.0 billion yuan ($490 million) — reportedly the largest penalty ever handed down by a Chinese court — after it found GSK guilty of “bribing non-government personnel”, the company said in a statement.

“The illegal activities of GSKCI are a clear breach of GSK’s governance and compliance procedures; and are wholly contrary to the values and standards expected from GSK employees,” the company said.

GSK did not mention the sentencing of Reilly or other officials in its statement.

Chinese police had alleged that Reilly “pressed his sales teams to bribe hospitals, doctors and health institutions” in order to gain billions of dollars in illegal revenue, Xinhua reported in May.


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