UK drugs firm probes new bribery allegations
By Ding Yining |
July 9, 2013, Tuesday
|
Print Edition
Print Edition
UK drug maker GlaxoSmithKline is investigating new allegations about its activities in China.
The investigation follows previous claims that sales staff were bribing doctors.
The new allegations concern the sale and marketing of Botox as a treatment for migraines and facial spasm.
Sales personnel in China were said to be offering doctors cash or other inducements to prescribe Botox, according to yesterday's Wall Street Journal.
GSK has the clinical development and commercial rights to Botox in China as part of a long-term agreement with US group Allergan.
The Wall Street Journal report quoted documents provided by an anonymous source as saying that sales staff were instructed by local managers to use their personal e-mail addresses to discuss Botox marketing tactics.
The Wall Street Journal said it was alleged that 48 doctors had been targeted in a sales strategy that involved rewarding them with a percentage of the cash value of prescriptions sold to patients.
Internal investigations
"Our inquiries to date have found no evidence of bribery or corruption in relation to our sales and marketing of therapeutic Botox in China," the pharmaceutical company said yesterday.
GSK said it believed the new complaint come from the same whistleblower who has made earlier claims of corruption and bribery in its China business.
Previous internal investigations had found no evidence to support these claims, but the company said yesterday it would be launching inquiries into the latest allegations.
Hospitals remain the dominant channel in terms of drug sales in China, especially prescription drugs, and doctors have a major say in deciding what kind of medicine to give to patients.
Sinohealth Intelligence said in a research report that 74 percent of pharmaceutical sales were made by hospitals.
Last week, GSK confirmed it was under investigation by government authorities and that its offices in Beijing, Changsha and Shanghai had been visited by officials late last month.
Police in the central China city of Changsha said they were investigating senior management staff at the firm for suspected "economic crimes."
The investigation follows previous claims that sales staff were bribing doctors.
The new allegations concern the sale and marketing of Botox as a treatment for migraines and facial spasm.
Sales personnel in China were said to be offering doctors cash or other inducements to prescribe Botox, according to yesterday's Wall Street Journal.
GSK has the clinical development and commercial rights to Botox in China as part of a long-term agreement with US group Allergan.
The Wall Street Journal report quoted documents provided by an anonymous source as saying that sales staff were instructed by local managers to use their personal e-mail addresses to discuss Botox marketing tactics.
The Wall Street Journal said it was alleged that 48 doctors had been targeted in a sales strategy that involved rewarding them with a percentage of the cash value of prescriptions sold to patients.
Internal investigations
"Our inquiries to date have found no evidence of bribery or corruption in relation to our sales and marketing of therapeutic Botox in China," the pharmaceutical company said yesterday.
GSK said it believed the new complaint come from the same whistleblower who has made earlier claims of corruption and bribery in its China business.
Previous internal investigations had found no evidence to support these claims, but the company said yesterday it would be launching inquiries into the latest allegations.
Hospitals remain the dominant channel in terms of drug sales in China, especially prescription drugs, and doctors have a major say in deciding what kind of medicine to give to patients.
Sinohealth Intelligence said in a research report that 74 percent of pharmaceutical sales were made by hospitals.
Last week, GSK confirmed it was under investigation by government authorities and that its offices in Beijing, Changsha and Shanghai had been visited by officials late last month.
Police in the central China city of Changsha said they were investigating senior management staff at the firm for suspected "economic crimes."
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