Witty goes to China
pharmafile | December 3, 2013 | News story | Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | China, GSK, Witty, bribery
GlaxoSmithKline chief executive Sir Andrew Witty has embarked on a potentially delicate diplomatic mission as part of a UK trade delegation to China.
All eyes will be on Sir Andrew in the country where his company has been accused of using travel agencies to handle £320 million of kickbacks to doctors.
The fallout from these corruption investigations in China has hit GSK hard, with third quarter sales in the country down 61% year-on-year after turnover had grown for the first half of 2013.
Sir Andrew has already said that the alleged actions are ‘shameful’ – and admitted that the investigation has disrupted GSK’s business.
But he has insisted that GSK is co-operating with the authorities and remains “fully committed to supplying our products to patients in the country”.
A GSK spokesman explained to Bloomberg that the trip was “an opportunity for us to reiterate our commitment to China”.
In a legal note to its accounts, GSK said: “The People’s Republic of China, acting through various government agencies, continues its investigation into alleged crimes and violations of law by GSK China’s operations.”
It added: “It is not possible at this time to make a reliable estimate of the financial effect, if any, that could result from these matters.”
What is for certain is that other western pharma companies have not had the same problem: in their own third quarter 2013 results, Novartis saw China sales rise 18% year-on-year while those of fellow Swiss manufacturer Roche jumped 23% in the country.
Health secretary Jeremy Hunt and universities and science minister David Willetts are also part of the three-day mission to China, which is led by prime minister David Cameron.
The idea of the visit to three cities is to build “a long-term relationship between Britain and China based on mutual understanding and respect for mutual benefit”.
Cameron is to hold meetings with president Xi Jinping and premier Li Keqiang, and meet Chinese investors, students and “civil society representatives”.
Adam Hill
Related Content
GSK’s Exdensur receives MHRA approval for asthma and rhinosinusitis
GSK’s Exdensur (depemokimab), a twice-yearly biological medicine, has received approval from the UK Medicines and …
Multiple myeloma treatment approved in Japan
GSK’s Blenrep (belantamab mafodotin) combinations have been approved by Japan’s Ministry of Health, Labour and …
CARBOGEN AMCIS manufacturing license advances services in China
Swiss pharma manufacturing company, CARBOGEN AMCIS, has announced that its facility in Shanghai, China, has …
