GSK China probe extends to Botox sales
pharmafile | July 8, 2013 | News story | Sales and Marketing | Botox, China, GSK, whistleblower
GlaxoSmithKline’s woes in China are continuing as the firm’s sales tactics with Botox are put under scrutiny.
The London-based firm said today that it was investigating allegations that its staff had used ‘improper tactics’ to market the anti-wrinkle and incontinence drug Botox in China, according to the Wall Street Journal.
The WSJ said internal documents and emails showed GSK’s China sales staff were apparently instructed to use their personal email addresses to discuss marketing strategies related to Botox.
The drug has been developed by Allergan but GSK has a marketing deal with the firm to sell the treatment in China and Japan.
GSK said in a statement that it has so far found no evidence of bribery or corruption, despite a whistleblower saying the firm has allegedly been giving doctors cash and other rewards for prescribing Botox.
This comes a week after the firm was accused of differences in prices of imported products sold by foreign firms such as GSK in China, compared with those in other markets.
Details of exactly what GSK staff were doing have remained unclear however, with the allegations being dubbed as ‘economic crimes’. GSK strenuously denies any wrongdoing.
A GSK spokesman told Reuters that the company believed the new allegations over Botox came from the same source that previously made claims over corruption in China.
“Nevertheless, we are investigating these new claims. However, our inquiries to date have found no evidence of bribery or corruption in relation to our sales and marketing of therapeutic Botox in China,” the spokesman said.
He added: “GSK has some of the toughest compliance procedures in the sector. We are proud of our high standards and operate in accordance with them.”
China is the biggest of the new emerging markets, and many pharma firms have been looking to move into south-east Asia to help grow revenues.
But GSK’s sales in China make up less than 3.5% of the company’s global pharma revenues and are less profitable than its Western businesses, said Mark Clark, an analyst at Deutsche Bank in London.
“China is really not a big needle mover in terms of earnings for Glaxo, even if emerging markets as a whole are an important sales growth driver,” he told Bloomberg.
Ben Adams
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