Pharmaceutical Business review

GSK to pay £297m fine over bribery scandal in China

GSK China Investment (GSKCI) 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 company has co-operated fully with the authorities and has taken steps to comprehensively rectify the issues identified at the operations of GSKCI.

Investigations by the Chinese authorities against GSK were initiated last June and the verdict brings an end to these investigations into the bribing of doctors by the company to promote use of its medicines.

The Chinese court also sentenced former head of GSK China Mark Reilly and other GSK executives to between two and four years in jail.

The company said in a statement that illegal activities of GSKCI are a clear breach of its governance and compliance procedures; and are wholly contrary to the values and standards expected from its employees.

GSK chief executive officer Sir Andrew Witty said reaching a conclusion in the investigation of its Chinese business is important, but this has been a deeply disappointing matter for the company.

"We have and will continue to learn from this. GSK has been in China for close to a hundred years and we remain fully committed to the country and its people," Witty said.

"We will continue to expand access to innovative medicines and vaccines to improve their health and well-being. We will also continue to invest directly in the country to support the government’s health care reform agenda and long-term plans for economic growth."