Police urge GSK co-op in probe after scandal

Xinhua | Updated: 2013-07-22 06:49

BEIJING - A senior official from the Ministry of Public Security (MPS) has met with a representative from the head office of pharmaceutical giant GlaxoSmithKline (GSK), urging the company to cooperate with the Chinese police in investigations.

When meeting with Abbas Hussain, president of Europe, Emerging Markets and Asia Pacific of the GSK, the unidentified official from the MPS said some senior executives of GSK China colluded with affiliated companies to offer large bribes to push up drug prices, expand sales and seek illegal profits, according to a statement from the MPS on Sunday.

Their suspected crimes have not only violated Chinese laws, but also seriously disturbed the market order and harmed the Chinese patients' interests, said the official.

The meeting came after the MPS announced on July 11 that some employees from GSK China are being investigated for suspected bribery and tax-related violations. Four senior executives from the company are being held by police over their alleged involvement.

The official said the GSK head office should face up to its responsibilities and obligations, fulfil the commitments made in its apologetic statement, and cooperate with the Chinese police in investigation. The official hoped GSK China resume productions and normal business operation at an early date.

Hussain made an apology on behalf of GSK head office, saying that the GSK head office will fully support the Chinese government's anti-corruption determination and actions, as well as support and cooperate with the Chinese police in investigations. It will also improve its business and practices to better serve Chinese patients.

GSK issued a statement in response to China's investigation on July 15, saying that "GSK shares the desire of the Chinese authorities to root out corruption. These allegations are shameful and we regret this has occurred."

GSK's statement said it "will cooperate fully with the Chinese authorities in the investigations of these new allegations. We will take all necessary action required by the outcome of this investigation."