China accuses GlaxoSmithKline of bribing officials to raise prices

11th Jul 2013 09:12

China has accused GlaxoSmithKline (GSK) of bribing government officials and doctors to raise drug prices and boost sales.The Ministry of Public Security on Thursday said an investigation in three of China's biggest cities - Changsha, Shanghai and Zhengzhou - revealed GSK had tried bribe government officials, medical associations, hospitals and doctors to raise prices.The Chinese government discovered the UK-based company's practices as part of an industry-wide investigation. The government said police were taking action against the suspects."There are many suspects, the illegal behaviour continued over a long time and its scale is huge," the ministry said. "Following initial questioning, the suspects have confessed," it added.The ministry said staff had also issued false VAT receipts. Employees also used travel agents to issue such fake receipts to gain cash. Some executives had taken advantage of their positions to take perks from the organisation of conferences and projects.A GSK spokesperson in China declined to comment.The revelations came to light after the company launched an internal probe when it was notified that employees had bribed doctors to issue prescriptions for its drugs.RD