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July 27, 2013

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GSK staff 'catered to doctors' pleasures'

SALES agents of pharmaceutical giant GlaxoSmithKline were trained to build relationships with doctors by offering money and "catering to their pleasures," Xinhua news agency said yesterday.

The British firm is currently the subject of a bribery investigation by Chinese authorities.

Company representatives offered bribes of 10 to 20 yuan (US$1.6-US$3.2) each time doctors prescribed some GSK products in China, Xinhua reported.

The agents "established good personal relations with doctors by catering to their pleasures or offering them money, in order to make them prescribe more drugs," Xinhua said.

Authorities have detained four Chinese GSK executives on allegations that employees used nearly US$500 million in bribes to boost sales.

Police say GSK staff offered government officials and doctors bribes and took kickbacks from travel agencies to organize conferences, some of which were fake.

Chinese authorities have not announced formal charges against GSK employees, but media reports said executives had confessed and showed the former operations manager on China Central Television.

"Some executives gave clear directives to the sales department to offer bribes to doctors or opportunities to attend academic conferences," Xinhua quoted a GSK regional sales manager as saying.

Doctors earned a 7-10 percent cut from sales of GSK drugs they prescribed, the report said.

GSK Chief Executive Andrew Witty said on Wednesday that the allegations were "shameful" and he pledged to cooperate with Chinese authorities.

On Thursday, the company announced the appointment of a new boss at its Chinese division. Herve Gisserot was previously co-head of its business in Europe.

The previous head of China operations, Mark Reilly, left the country in early July shortly after the allegations surfaced.

In a separate report, Xinhua quoted police as saying Reilly would return to China in the "near future" to cooperate in the investigation.



 

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