Travel ban ambiguity for GSK ‘s former China boss
pharmafile | October 17, 2013 | News story | Sales and Marketing | China, GSK, bribery, reilly
GlaxoSmithKline has refuted reports that its former chief of Chinese operations is barred from leaving the country while he assists a corruption probe.
According to the Telegraph, Mark Reilly has been ordered not to leave China by authorities as the enquiry continues.
GSK claims that Reilly was detained ‘at no point’ and “remains in China to help further with the investigation should it be required”.
The British embassy in Beijing also states that the 47-year-old is not in police custody. A spokesman said that Reilly is in regular contact with diplomats, who are providing him with consular assistance.
Allegations against GSK’s Chinese operations emerged in July when four senior executives were arrested for suspected illegal financial activity and ‘sexual bribery’.
The accusations related to claims that doctors and hospitals had been offered cash incentives, as well as visits by prostitutes, to prescribe GSK products to patients. The total value of bribes is said to have approached £300 million.
Reilly left China for London shortly after a police probe into the controversy was announced. His role as GSK’s top executive in the region was filled by the firm’s European vice president Hervé Gisserot.
GSK chief executive Sir Andrew Witty later described the allegations as ‘deeply disappointing’ and ‘shameful’, and set up an independent review of the allegations.
The British drugmaker confirmed that Reilly returned to the country several weeks ago to assist with police investigations and remains there now.
Dozens of company employees are currently under police detainment and several more have been periodically prevented from leaving the country, including finance chief Steve Nechelput.
The Telegraph reports that Chinese premier Li Keqiang is personally overseeing the investigation, due to its high profile.
GSK is one of many major Western pharmaceutical companies currently under scrutiny by the Chinese government. In recent months, allegations of corruption or malpractice have been levelled at Sanofi, Novartis, Lilly and Bayer, among others.
GSK saw its second quarter sales in China rise by 14% this year to £212 million. The bribery scandal is likely to reverse that trend with third quarter results expected later this month.
Hugh McCafferty
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