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July 24, 2013

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US citizen held in drugs firms probe

A US citizen has been detained in Shanghai in connection with investigations into corruption in the drugs industry.

Police have also questioned two more Chinese employees from UK drugmaker AstraZeneca in the city.

The unnamed American is the first US citizen to be detained in connection with the investigations, and the second foreign national.

China has accused UK drugmaker GSK of funneling 3 billion yuan (US$489 million) to travel agencies to facilitate the payment of bribes to doctors and officials.

"We are aware that a US citizen has been detained in Shanghai. We are in contact with the individual and are providing all appropriate consular assistance," US Embassy spokesman Nolan Barkhouse said yesterday.

He declined to say which company the individual was associated with.

AstraZeneca said yesterday that the Shanghai Public Security Bureau had asked to speak with two line managers linked to a sales representative questioned earlier. "The Public Security Bureau is describing this as an individual case. We have no reason to believe it is related to other investigations," it said.

Meanwhile, Chinese doctors and officials at the receiving end of bribes are also feeling the wrath of the authorities. The Ministry of Health said 39 employees at a hospital in Guangdong Province would be punished for taking kickbacks, totaling 2.82 million yuan, from two drugmakers.

Shanghai police detained Briton Peter Humphrey earlier this month. Humphrey runs an international business risk advisory firm that has worked with drug companies, including GSK.





 

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