GSK mum on plans for China unit, investigation

A GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) contact authorized to talk about the company's situation in China did not return calls for comment in the U.S. or Europe related to a pair of recent stories. These included a report last week from Chinese state news agency Xinhua that alleged bribery was "organized by GSK China rather than drug salespeople's individual behavior." Also, a BBC story said the pharma could face "enormous" fines in the U.S. and U.K if it were to plead guilty as a company to bribery and might have to consider withdrawing from the Chinese market.

In July, China's Ministry of Public Security arrested several GSK executives after finding evidence they had bribed government officials, foundations, hospitals and doctors. Since then, GSK has been the focus of an ongoing investigation of bribery and tax crimes in China, which the company maintains were the result of actions by senior managers in China who defrauded the company as well as the Chinese healthcare system. ...