Allegations of misconduct continue to plague Big Pharma companies in China. Charges of bribery, corruption, off-label promotion, and inflated pricing now extend beyond GlaxoSmithKline (GSK) to Novartis, Eli Lilly, and Sanofi. While these companies react to coming under Chinese scrutiny — with Johnson & Johnson (J&J) reportedly taking “proactive” steps to strengthen its China unit – the Company that started it all (GSK) braces for major fines. [Read more...]
Big Pharma On Its Heels as China Rounds Up “More Of The Usual Suspects” And Prepares To Slam GSK
September 6, 2013 By Leave a Comment
GSK China Bribery Scandal Continues to Grow; Astra Zeneca and Others May Be Next
July 26, 2013 By 1 Comment
Allegations of bribes, sexual favors, and inflated seminar expenses swirl around GSK as news of China’s high level police investigation continues to unfold on a daily basis. Four Chinese GSK executives have been arrested, one is being barred from leaving the country and the most recent reports indicate that up to six other big pharma companies are about to be taken down. Although the situation looks bad for GSK, the burgeoning Chinese bribery scandal will most likely ensnare other pharma companies sometime soon. [Read more...]
GSK’s China Employees “Confess” To Bribery
July 11, 2013 By Leave a Comment
Yesterday we described the burgeoning bribery allegations against GSK’s China operations in a post titled “Enemy at the Gates: Bribery Charges in China Getting Worse for GSK.” Apparently, GSK’s China woes are getting worse by the day. A Reuters article reports that the Chinese government has secured “confessions” from several GSK “executives” to bribery and tax violations. (Click http://www.reuters.com/article/2013/07/11/gsk-china-idUSL4N0FH21620130711 to read the Reuters story).
Allegations reported recently in the Wall Street Journal disclose that GSK Chinese staffers developed a plan, dubbed the “Vasily” program after famed World War II Russian sniper, Vasily Zaytsev, that targeted 48 doctors for payments and gifts in exchange for writing GSK drug prescriptions. Pharmarisc will be following this story and will report any significant developments in the case.
Enemy at the Gates: Bribery Charges in China Getting Worse For GSK
July 10, 2013 By Leave a Comment
Recent news reports from the Wall Street Journal about an alleged bribery scheme at GlaxoSmithKline’s (GSK) China operations come on the heels of several arrests of GSK employees, including one foreign executive, on charges of “economic crimes.” The bribery scheme reportedly involved a plan to pay 48 Chinese doctors to push sales of Botox® and was dubbed the “Vasily” strategy after famed World War II Russian sniper, Vasily Zaytsev, who Jude Law portrayed in the 2001 film, Enemy at the Gates. A GSK whistleblower is the apparent source for the recent WSJ reports, as well as earlier reports submitted to the Company in January, and may also be responsible for the recent GSK arrests in China. Although GSK has stated that its internal investigation of the whistleblower’s January allegations found “no evidence of bribery or corruption,” the allegations in the recent WSJ reports are embarrassing and not likely to go away anytime soon. [Read more...]
A Holiday Gift From the Feds — FCPA Guidance At Long Last
November 30, 2012 By Leave a Comment
After years of waiting, companies doing business overseas got an early holiday gift from the Feds on November 14th — the long-awaited guidance on the FCPA. Unfortunately, the 120-page document entitled A Resource Guide to the U.S. Foreign Corrupt Practices Act (issued jointly by the DOJ and SEC) is much like that beautifully wrapped large gift one often finds under a Christmas tree: as the wrapping paper is torn and the box’s contents inspected, the excitement dwindles when the recipient realizes he got the same gift last year . . . and the year before. [Read more...]
