GlaxoSmithKline fined £300 Million by China in Bribery Case

GSK admits it is at fault, will not appeal, and issued a statement of apology to the people of China

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The Chines GSK case involved accusations of criminal bribery to persuade hospitals and doctors to administer or sell the company’s pharmaceuticals to their patients.

In July 2012, the U.S. State Department had fined GSK $3 billion for marketing drugs for unapproved uses.

September 2004, after a one-day secret trial, a Chinese court has fined the giant British pharmaceutical company GlaxoSmithKline (GSK) £297 million (3 billion RMB at a currency exchange rate of 10.0980). for bribing hospitals and doctors to use their products.

The court also sentenced GSK’s former country manager Mark Reilly as well as four additional managers to prison time of up to four years. However, the sentences were suspended, and the managers will avoid prison with good behavior–though Reilly must leave the country.

GSK admits it’s at fault, will not appeal, and issued a statement of apology.

Sources and More Information:

  • China Fines GlaxoSmithKline Nearly $500 Million in Bribery Case, NY Times, SEPT. 19, 2014.
  • GSK China Investigation Outcome, GSK press release, 19 September 2014.
  • GSK statement of apology to the people of China, GSK media/526041, 19 September 2014.

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