British drugmaker GlaxoSmithKline (GSK.L) channels bribe Chinese officials and doctors to promote sales through travel agencies six illegal drugs and increase their prices in China, police said Monday.
GlaxoSmithKline (GSK) Chinese senior managers have been detained, Gao Feng said that in the Ministry of Public Security Economic Crime Investigation Team Leader.
Since 2007, the company has transferred as many as 300 million yuan (U.S. $ 489 million), more than 700 travel agencies and consulting firms, high press conference. He did not do, it is unclear how much money was used to bribe officials and doctors.
Last week, the Ministry of Public Security, said GSK executives acknowledged in China bribery and tax violations.
Until Monday, the Chinese authorities released some of the details of the probe into the UK's largest pharmaceutical companies in the world's second largest economy by foreign companies and their pricing behavior of the investigation, one of a string.
, "High said:" We have every reason to suspect that these illicit transfers proceed.
"You can say, travel agencies and GlaxoSmithKline criminal partners in the partners, GlaxoSmithKline, is mainly responsible for the criminal organization there is always a leader."
GlaxoSmithKline officials were not immediately available for comment on Monday. The company has said it has found no evidence of bribery or corruption in China, but he added that it would cooperate with the authorities. It says it just tells the investigation in early July.
Detained executives, including Liang, vice president and chief operating manager of GlaxoSmithKline (China) Investment Co., Ltd., the company's vice president and human resources director Zhang Guowei, the official Xinhua News Agency reported.
It is unclear whether executives are legally represented.
Pharmaceutical companies in key markets
China is an increasingly important country for the international pharmaceutical company, which is relying on growth in emerging markets, in Western markets, many former top-selling drugs lose patent protection, to offset slowing sales.
IMS Health Company, tracking trends in the pharmaceutical industry, it is expected that China will surpass Japan to become the world's second largest pharmaceutical market after the United States, 2016.
Allegations of bribery that GlaxoSmithKline most striking Chinese Enterprise Survey, March 2010 since the mining giant Rio Tinto (RIO.L: Quote) (RIO.AX) The four executives were jailed for bribery and theft of commercial secrets.
High involving GlaxoSmithKline executives how bribes work in practice did not give specific examples. He said there are "bribery" examples, but he did not elaborate.
The official People's Daily newspaper said GlaxoSmithKline cooperation with travel agencies, establish fake "conference service" as GlaxoSmithKline expenses to misappropriation of funds, some of them, and then will be spent bribing doctors and officials.
GlaxoSmithKline's main products, such as vaccines in China, as well as lung disease and cancer.
Xinhua News Agency reported that the authorities in view of the beam, quotes detainees said drug costs $ 30, may eventually be sold for 300 yuan of patients. It does not specifically say that the beam refers GlaxoSmithKline drugs.
Police last Thursday said that for the case of GlaxoSmithKline involved a large number of staff, with Chinese government officials, medical associations, hospitals and doctors to provide bribes.
Unusual details such as the police to
Legal experts said that the police in the investigation process so much information that the facts disclose executives will be charged and convicted.
According to China's legal system, formal charges will only be announced after the completion of the preliminary investigation.
King & Capital Law Firm of China Yangzhao Dong, said: "The police will not disclose details of the deal is usually the case, they ...... they usually do not reveal so much information before making a final judgment handed down, although GSK declined comment specifically on the case.
"If they had revealed this information, which means that they feel they have a fairly complete set of evidence."
In the case of Rio Tinto, in the four executives - 1 A Chinese Australian citizen and three Chinese nationals - received prison terms were found guilty secret strategy meeting of the body on behalf of China's steel industry in obtaining information, 7 and 14 years Born between negotiations with iron ore suppliers.
Police said they did not take any action against any British citizen in the case of GlaxoSmithKline. No information has been received from the British company GlaxoSmithKline's headquarters, they added.
In recent months, China has targeted foreign companies in a number of areas, including the alleged price manipulation, quality control and consumer interests, forcing companies to defend their reputation in a country's international brands tend to have a valuable edge of the public trust local competitors.
European food group Nestle (NESN.VX) and Danone (Danone) (DANO.PA) recently said they would cut in China, the price of infant formula to enter the industry, the Beijing launched an investigation.
GlaxoSmithKline, Merck (MRK.N), Astellas Pharma (4503.T) and other foreign and domestic pharmaceutical enterprises unit cost and pricing issues China's top economic planning agency is also investigating.
Gao said, the police have found the information in their investigation pointed out that a similar remittance by other multinational pharmaceutical companies.
"Whether they (other companies) engaged in illegal behavior, you can go to interview them, but they will not get back to you," said Gao.
"You just need to ask them a question: Do you sleep well at night?"
 



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