China hands drugmaker GSK record $489 million fine for paying bribes
(Reuters) - China fined GlaxoSmithKline Plc (GSK.L) a record 3 billion yuan ($489 million) on Friday for paying bribes to doctors to use its drugs, underlining the risks of doing business there while also ending a damaging chapter for the British drugmaker.
A court in the southern city of Changsha handed suspended jail sentences to Mark Reilly, the former head of GSK in China, and four other GSK executives of between two and four years, according to state news agency Xinhua.
Briton Reilly, shown on state television wearing a suit and looking tired during the trial, will be deported, a source with direct knowledge of the case said.
The verdict, handed out behind closed doors in a single-day trial, highlights how Chinese regulators are increasingly cracking down on corporate malpractice.
More Here: http://www.reuters.com/article/2014/09/19/us-gsk-china-idUSKBN0HE0T...
Replies to This Discussion
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Permalink Reply by Nikki on
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The fines are just a slap on the wrist and they will continue business as usual.
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Permalink Reply by Tara on
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They did get jail sentences too, however shortened. "A court in the southern city of Changsha handed suspended jail sentences to Mark Reilly, the former head of GSK in China, and four other GSK executives of between two and four years, according to state news agency Xinhua."
You wouldn't see that happen in the US. Every Institution, from big Government down to public schools are in bed with Big Pharma. :(
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