GSK gets record $489 million fine

Source:Xinhua-Global Times Published: 2014-9-20 0:03:01

The China branch of British drug maker GlaxoSmithKline (GSK) has been fined 3 billion yuan ($489 million) for paying bribes on Friday, a verdict the firm "fully accepts" in a contrite statement.

Changsha Intermediate People's Court in Hunan Province ruled the firm was guilty of "bribing non-government personnel" and imposed the fine, the biggest ever by a Chinese court. GSK China "resorted to bribery to boost sales of its medical products and sought benefits in an unfair manner," the court stated.

Five ex-employees were sentenced to two to four years in prison with reprieve. Mark Reilly, a British national and former manager of GSK China, was given three years with a four-year reprieve and will be expelled from China.

The company issued an apology, saying that it "fully accepts the facts and evidence of the investigation, and the verdict of the Chinese judicial authorities."

GSK also apologized to the Chinese patients, doctors and hospitals, as well as to the Chinese government.

Sun Zhongshi, an expert with the Chinese Monitoring Network for Rational Use of Drugs, said that the punishment on GSK China serves as a loud warning to all the pharmaceutical companies in the country, foreign or domestic.

Sun added that China would not show any favor or tolerance towards foreign companies committing such crimes.



Posted in: Society

blog comments powered by Disqus