GSK found guilty in China of bribing personnel
GlaxoSmithKline (GSK) has been found guilty in China of bribing non-government personnel with money or property to promote its products, the company revealed on Friday.
The verdict follows investigations initiated by China's Ministry of Public Security in June 2013.
The drugmaker's unit GSK China Investment Co. will pay a fine of £297m to the Chinese government, which will be funded through existing cash resources. Associated costs will be included in the company’s third quarter update.
GSK said it has fully co-operated with authorities and taken steps to rectify the issues identified.
"Reaching a conclusion in the investigation of our Chinese business is important, but this has been a deeply disappointing matter for GSK,” said chief executive Andrew Witty.
“We have and will continue to learn from this. GSK has been in China for close to a hundred years and we remain fully committed to the country and its people. We will continue to expand access to innovative medicines and vaccines to improve their health and well-being. We will also continue to invest directly in the country to support the government's health care reform agenda and long-term plans for economic growth."