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Urgent reforms for the pharmaceutical industry
Updated : 2013/09/04 02:42
By Xu Wei (China Daily)
Experts have called for reforms to public hospitals and more legislation on the pharmaceutical sector, after police revealed more details on Sept. 3 of suspected GlaxoSmithKline financial violations in China.
The British pharmaceutical giant has been under investigation since early July over suspicions of bribery and tax violations, more details were added recently by company employees, according to the Ministry of Public Security website.
According to police investigators, the drug company "indulged" in bribing doctors -- or, at least, "gave tacit permission" -- saying individual employees were responsible for wrongdoing.
Chinese authorities have arrested four Chinese GSK executives over allegations that employees paid nearly $490 million in bribes through travel agencies to hospital officials and doctors in an effort to boost pharmaceutical sales.
Huang Hong, general manager of GSK's business operations in China, told Xinhua News Agency that the company had set an annual growth target of 25 percent, which is 7-8 percent higher than the industry average, and added that the irrational target was impossible to achieve without violating regulations.
Meanwhile, a sales team covering the company's major customers has been expanded from fewer than 10 members to more than 50 in the past five years, and nearly 10 million yuan ($1.63 million) of "advertising funds" has been allocated.