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GlaxoSmithKline pharmaceuticals news

September 22, 2014 7:00 AM UTC

The Changsha Intermediate People's Court in Hunan Province found GlaxoSmithKline's GSK China Investment Co. Ltd. subsidiary guilty of bribing non-government personnel in violation of Chinese law and fined the pharma L297 million ($482.7 million). The penalty is a record corporate fine in China, according to state news agency Xinhua. The fine is 39% of GSK's pharmaceutical and vaccine sales in China in 2012.

According to Xinhua, the court also sentenced five GSK executives to two to four years in prison, including Mark Reilly, former general manager of GSK China. GSK published a statement of apology on its website, saying it "fully accepts" the verdict. The company said GSK China's actions were in "clear breach" of the company's governance and compliance procedures. ...