China penalize GlaxoSmithKline $490 million

British pharmaceuticals charged by China, giant GlaxoSmithKline Plc 3 billion yuan ($490 million) for paying out bribes in what is a record penalty for China, Xinhuasaid on Friday.

A court in Changsha has also sentenced Mark Reilly, the former head of GSK in China, and other GSK executives to between two and four years in jail, Xinhuaadded.The verdict, handed out behind closed doors in a single-day trial according toXinhua, is the culmination of a Chinese probe into the British drug maker, which Chinese authorities made public in July 2013.

Chinese police said then that the firm had funnelled up to 3 billion yuan to travel agencies to facilitate bribes to doctors and officials.GSK said in a statement on their website on Friday that the activities by the firm’s China unit were a “clear breach” of GSK’s governance and compliance procedures.

“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 CEO, Andrew Witty, said in the statement.

courtesy : Reuters

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