GSK Facing Criminal Investigation Following Bribery Allegations
Pharmaceutical giant GlaxoSmithKline is facing charges in Poland for allegedly bribing doctors. Eleven doctors along with a GSK regional manager were charged with participating in corruption, which allegedly took place between 2010 and 2012. Reports say that the doctors involved with GSK were paid under the table in order to promote the company’s asthma drug Seretide. GSK has stated that it is complying with the investigators and that it has already disciplined an employee. If the allegations are proven true, GSK might have violated laws abroad as well. Pharmaceutical companies based in the U.S. or the UK cannot bride government officials abroad. GSK could potentially be in violation of the UK Bribery Act and the U.S. Foreign Corrupt Practices Act, either of which could draw significant penalties.
Polish officials say that GSK paid doctors under the guise of a “patient education” program. Krzysztof Kopania, spokesman for the Lodz public prosecutor, said that the bribes were hidden. “We have evidence that in more than a dozen cases it was a camouflaged form of a bribe,” said Kopania. “In return for the financial gains the doctors would favor the product proposed by the pharmaceutical company and they prescribed that medicine.”
GSK released a statement on the matter: “These sessions were delivered by specialist healthcare professionals who, based on contracts signed with GSK, received payments appropriate to the scope of work as well as their level of knowledge and experience. The provision of sessions under this program was agreed with the Polish healthcare centers. Following receipt of allegations regarding the conduct of the program in the Lodz region, GSK has investigated the matter, using resources from both inside and outside the company. The investigation found evidence of inappropriate communication in contravention of GSK policy by a single employee. The employee concerned was reprimanded and disciplined as a result.”
GSK has been working to change its incentives program following a scandal in China last year, BBC News says. According to the Chinese Ministry of Public Security, the company transferred 3 billion Chinese yuan through travel agencies between 2007 and 2010. GSK has since said it would end direct payments to doctors for promotional talks. It has also ceased to set individual targets for its sales reps in order to improve transparency.