At the beginning of this year, China's president Xi Jinping promised to fight both "tigers" and "flies" -- high-ranking and low-ranking corrupt officials -- in his crackdown on corruption. Since then, the anti-graft campaign has led to the conviction of Bo Xilai and to the front-page investigations of foreign companies in the pharmaceutical and oil and gas sectors, among others.
Entries in Glaxo (29)
Pharmas have told their sales teams to halt all activity in China to avoid being caught in the nationwide “enforcement storm,” according to the Guangdong-based Yangcheng Evening News.
The entry of the Chinese government into the international fight against corruption and bribery is truly a game-changer. While there may be many reasons for this very public move by the Chinese government, it is clear that foreign companies are now on notice. Doing business the old fashioned way will no longer be tolerated.
China state media reported Saturday that French drugmaker Sanofi SA is under investigation for allegedly bribing doctors to increase sales.
“Over the last decade, since the passage of the Sarbanes-Oxley Act in 2002, publicly traded corporations have poured significant resources into their compliance programs to prevent wrongdoing . . .
The GSK China bribery investigators are probably going to name several other significant foreign companies in the coming days and weeks. The State Administration for Industry & Commerce (SAIC) has already announced that investigations into several other pharmaceutical companies have begun. And authorities have visited three multinational drug companies.
Here's a thoughtful comment from a U.S.-based compliance professional who asked not to be named:
China state media reported Friday that police have detained 18 more people in the growing bribery investigation of U.K. drug maker GlaxoSmithKline.