Updated on 13 November 2013
China has intensified investigations against GSK and has said that other multinational pharma companies will be probed deeply too
Singapore: The economic crime investigation unit of China's Ministry of Public Security has now released a statement regarding the crackdown on British drug major GlaxoSmithKline (GSK) in the bribery, corruption and sexual favours allegations case.
The officials revealed that four high level Chinese Glaxo executives have been detained over allegations of ‘severely violating' Chinese law. The Ministry has accused Glaxo executives of using travel agencies as vehicles to bribe government officials, hospitals and doctors in order to sell more drugs at higher prices.
"A large part of their strategy for sales and marketing has been to conspire and encourage the possibility of commercial bribery," said Mr Gao Feng, the ministry official heading the probe.
He added that Glaxo and the travel agencies exchanged $489 million (three billion Chinese yuan) between them since 2007. The ministry, however, did not make it clear whether any of that money was used for legitimate business purposes. He reiterated that the travel agencies also offered what he called sexual bribes to senior Glaxo executives to keep the company's business.
Releasing a statement on the same day, GlaxoSmithKline said that, "We are deeply concerned and disappointed by these serious allegations of fraudulent behavior and ethical misconduct. GSK has zero tolerance for any behaviour of this nature and the alleged behavior would be a breach of the company's standards."