GlaxoSmithKline Fined £297m For China 'Bribes'

GlaxoSmithKline (GSK) has been fined almost £300m by a court in China in relation to allegations of bribery.

The pharmaceutical firm confirmed the £297m penalty imposed by the Changsha Intermediate People's Court in Hunan Province, saying it accepted that illegal activities took place and the fine would be paid through existing cash resources.

The statement said the court found that "GSK China Investment (GSKCI) ...offered money or property to non-government personnel in order to obtain improper commercial gains.

"The illegal activities of GSKCI are a clear breach of GSK's governance and compliance procedures; and are wholly contrary to the values and standards expected from GSK employees.

"GSK has published a statement of apology to the Chinese government and its people on its website.

"GSK has co-operated fully with the authorities and has taken steps to comprehensively rectify the issues identified at the operations of GSKCI.

"This includes fundamentally changing the incentive programme for its salesforces (decoupling sales targets from compensation); significantly reducing and changing engagement activities with healthcare professionals; and expanding processes for review and monitoring of invoicing and payments."

GSK chief executive Sir Andrew Witty added: "Reaching a conclusion in the investigation of our Chinese business is important, but this has been a deeply disappointing matter for GSK.

"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."

More follows...