. GPS News .




INTERN DAILY
GSK says China bribery probe to hit performance
by Staff Writers
London (AFP) July 24, 2013


GlaxoSmithKline expects its performance in China to take a hit from Beijing's probe into bribery allegedly carried out by senior staff, the British drugs firm said Wednesday, and described the matter as "shameful".

"Clearly, we are likely to see some impact to our performance in China as a result of the current investigation, but it is too early to quantify the extent of this," GSK chief executive Andrew Witty said in a results statement.

"We are co-operating fully with the Chinese authorities in this matter," he added alongside news of sliding second-quarter profits for the group.

GSK had admitted on Monday that senior employees at its China unit appeared to have breached Chinese law -- after Chinese authorities alleged that employees had bribed government officials, pharmaceutical industry groups, hospitals and doctors to promote sales.

Witty, addressing reporters after publication of the results, added that the behaviour would also be investigated by the company.

"From what we understand from the authorities, it appears that certain senior managers in the Chinese business have acted outside of our processes and our controls and both defrauded the company and the Chinese healthcare system," Witty told journalists on Wednesday.

"To see these allegations made about people working for GSK is, as we have said, shameful. For me, personnally, they are deeply disappointing.

"The alleged activities are not what we expect of our people and are totally contrary to our values.

"Outside and inside the company, people rightly expect us to operate with integrity and to be crystal clear -- we have zero tolerance for this kind of behaviour.

"I can assure you we are absolutely committed to rooting out corruption and we are absolutely committed to get to the bottom of what has happened here.

"We are cooperating fully with the authorities and obviously we are looking into what has happened ourselves."

He added that the group had set up a review to investigate the matter.

"One thing I can guarantee: we will learn from this and we will make changes," he added.

"In the meantime, I would like to say that we are committed to China. We support the efforts of the Chinese government to reform the medical sector and we are open to looking at all ideas to improve affordability and access to our medicines, including changing our own business model in China."

He added that GSK believed that China remains "a key environment for further investment".

A Chinese police official has previously claimed GSK staff funnelled nearly $500 million in suspected bribes through travel agencies and consultants since 2007.

Police have held four top executives of GSK China and prevented another, the firm's British finance director, from leaving the country, although he has not been formally detained.

Police allege that GSK staff also took kickbacks from travel agencies in return for organising conferences, some of which did not exist.

According to media reports, more than 20 people have been detained in the case.

Meanwhile on Wednesday, GSK revealed that group net profits sank 15.6 percent to �1.045 billion ($1.6 billion, 1.2 billion euros) in the three months to June, as austerity-driven European governments tightened their budgets and cut expenditure.

That compared with profit after tax of �1.238 billion in the same period a year earlier.

The results also reflected GSK's decision to restructure its European operations.

Sales grew 2.0 percent to �6.618 billion in the second quarter, aided by faster-growing emerging markets.

Investors shrugged off the results and China profits warning, with GSK's share price rising 0.21 percent to 1,676 pence on London's FTSE 100 index of leading companies, which was 0.12-percent higher in late afternoon deals.

.


Related Links
Hospital and Medical News at InternDaily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Get Our Free Newsletters
Space - Defense - Environment - Energy - Solar - Nuclear

...







INTERN DAILY
American detained in China amid pharma probe: official
Beijing (AFP) July 23, 2013
An American has been detained in China, a US embassy official said on Tuesday, as Chinese authorities continue a probe into corruption by multinational pharmaceutical companies. Asked if a US citizen had been detained during the probe which has included charges of bribery against GlaxoSmithKline (GSK), embassy spokesman Nolan Barkhouse said: "We are aware that a US citizen has been detained ... read more


INTERN DAILY
Scientists sound new warning for arsenic in rice

Maize trade disruption could have global ramifications

Major global analysis offers hope for saving the wild side of staple food crops

Why crop rotation works

INTERN DAILY
Broadband photodetector for polarized light

Intel profits slide as chipmaker repositions

NIST shows how to make a compact frequency comb in minutes

New analytical methodology can guide electrode optimization

INTERN DAILY
Northrop Grumman Selected by UK Ministry of Defence to Support Large Aircraft Infrared Countermeasures Systems

Lockheed Martin Delivers 100th Targeting System for F-35

Russia to design a new strategic bomber

Tests clear Czech army's faulty Spain-made military planes

INTERN DAILY
LADWP Officials Announce Expanded Electric Vehicle Program

Hydrogen cars quickened by Copenhagen chemists

EU largely backs France in German Mercedes row/

New Model to Improve Vehicle-to-Vehicle Communication for 'Intelligent Transportation'

INTERN DAILY
Anger over Spanish corruptioin spills into streets

End of China boom a challenge, not a crisis: Australia

Mercosur mired in row over Paraguay's suspension

Chilean court halts Canadian gold mine project

INTERN DAILY
Black Bears Return to Missouri Indicates Healthy Forests

Loss of African woodland may impact on climate

Most flammable boreal forests in North America become more so

80 percent of Malaysian Borneo degraded by logging

INTERN DAILY
e2v and Astrium sign contract for imaging sensors to equip the Sentinel 4 satellite

The First Interplanetary Photobomb

The Color of the Ocean: the SABIA-Mar Mission

GOES-R Improvements to Provide Stunning, Continuous Full-Disk Imagery

INTERN DAILY
New nanoscale imaging method finds application in plasmonics

York Nanocentre researchers image individual atoms in a living catalytic reaction

NASA Engineer Achieves Another Milestone in Emerging Nanotechnology

Efficient Production Process for Coveted Nanocrystals




The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement