TEMPO.CO, Jakarta - Giant pharmaceutical British company, GlaxoSmithKline Plc (GSK), has been fined 3 billion yuan or approximately US$488.8 million. The fine was a sanction after the Changsa court in Hunan's verdict stating GSK guilty in a bribery case.
The China police said the company had funneled approximately 3 billion yuan to travel agencies to facilitate the bribes to doctors and officers. The court also sentenced former head of GSK in China, Mark Reily and other GSK executives to 2-4 years in jail.
In the organization's written statement on their site, GSK apologized to patients, doctors, hospitals and the Chinese government. They stated GSK China Investment Co Ltd's illegal activities were violations of the company's compliance procedures and management.
"This has been a deeply disappointing matter for GSK. We have and will continue to learn from this," Andrew Witty, GSK CEO, said in the statement as quoted Friday.
GSK stated they were fully working together with authorities and taking steps to ameliorate the GSKCI's operational issues. The improvement includes changing the incentive program for sales forces, reducing and changing activities that involve health workers, and expanding the supervision of invoices and payments.
BERNADETTE CHRISTINA MUNTHE | REUTERS
