GlaxoSmithKline may face a fine of 20 billion yuan

Recently, GlaxoSmithKline (hereinafter referred to as GSK) is suspected of serious economic crimes in China, and the case has made new progress According to the police, GSK China has set up a large customer team to quickly open up the access of products to large hospitals, and paid bribes to the vice presidents in charge and the directors of Pharmacy Department of hundreds of hospitals across the country in the form of travel agencies and exhibition companies falsely increasing the funds for academic conferences At the same time, the company's executives involved in the case also wantonly accepted bribes from travel agencies, exhibition companies, as well as dealers such as Ruige pharmaceutical and state control The Daily Telegraph recently quoted a senior GSK executive as saying that GSK is considering leaving China due to possible heavy penalties of up to 2 billion pounds (20 billion yuan) and increasingly difficult business in China However, some analysts believe that this is a negotiation strategy After Liang Hong, vice president of GSK China and general manager of enterprise operation, Li Mou, sales manager of Zhengzhou region, Weng Jianyong, legal representative of Linjiang travel agency, etc., another group of personnel involved in the case successively explained the fact that they were suspected of bribery, bribery and other illegal crimes GSK's key account team, which was founded in 2008, also emerged The team is composed of "leader Director Project Manager Regional Manager" and reports directly to mark Reily, general manager of GSK China In recent years, the scale of the team has expanded from the first 10 people to the present 50 people Huang Hong, head of the key account team and general manager of GSK's China enterprise operation, said that the key account team's annual public relations budget is about 10 million yuan, and its main customers are almost all the top three hospitals and some of the top two hospitals in charge of drugs, vice presidents and directors of pharmacy "The key account team is mainly carried out in the way of project operation, for example, sponsoring the director of pharmacy department to attend international conferences, designing some training courses to be sent to the hospital, or sponsoring the expert salon, etc., in various forms." Huang Hong said that in every academic activity, there are tourism or high price gifts, sometimes there are "fares", which are directly given in cash And all of this, including Ma Kerui's management are clear, more often acquiescence and connivance It is understood that the key account team is generally divided into K1 and K2 customers according to the size of the hospital, with different visit frequency and requirements There is no conflict between them and nearly 3000 medical representatives all over the country The former specializes in big customers, and the latter in department directors or general doctors Public information shows that in the past few years, the composite growth rate of GSK China has reached 25%, and the sales volume has more than tripled from more than 2 billion yuan in 2008 to more than 7 billion yuan in 2012 According to Liang Hong, vice president of GSK China and general manager of enterprise operation, the "grey" cost of the investors for opening up the market accounts for 30% of the drug price, with a total amount of several hundred million yuan per year State control and other dealers involved in bribery are involved in case handling police said that GSK China is a two-way bribery chain, one is to pay bribes in the name of the company, the other is to take bribes in the name of some executives, involving many departments and links of the company And its latest case related problems verified by the police also ferment to the level of dealers According to the latest information disclosed by the police, the executives involved in GSK's case in China, while taking bribes from travel agencies and Convention and exhibition companies, have not forgotten to take bribes from dealers, among which the two companies, reggae pharmaceutical and state control, have been named At present, some of the senior executives of GSK China, such as Huang Hong, are suspected of taking bribes with a total amount of more than 11 million yuan Regarding the latest investigation progress, Fang Fang, head of GSK's public relations department, said it was all business problems of the company and would not comment at all However, Fang stressed that the company will fully cooperate with the Chinese government's investigation and fully support the Chinese government's determination to eradicate any corruption "These problems are obviously contrary to GlaxoSmithKline's corporate values The company will not tolerate such behaviors and will take all necessary measures according to the progress of the investigation." However, some GSK employees expressed strong dissatisfaction with the company's practices, believing that they were "abandoned without mercy at a critical moment", and were generally disappointed and dissatisfied GSK's head office, in its previous statement, put the blame on some of its employees "We are deeply concerned and disappointed by the serious allegations of fraud and unethical conduct faced by some of its employees and third-party organizations." "The company almost forces its employees to complete a lot of compliance courses Now, to reflect on these practices is to prohibit them openly and encourage them secretly, which is the opposite of each other." A GSK employee told the media that it is a great shame for a large multinational company with a world reputation.