So, this is how it worked folks.
GlaxoSmithKline China, under the management of Mark Reilly, allegedly told sales reps to bribe doctors, hospitals and health institutions. As a result GSK’s sales soared from 3.9 billion Yuan in 2009 to 6.9 billion Yuan in 2012.
The video below shows a GSK sales manager…
“If the doctors prescribed more of our drugs they would be rewarded accordingly.
“We would treat them to dinners or buy gifts for their families, sometimes it was even more direct, we just gave supermarket gift cards or cash during holidays.”
Obviously GSK would need to balance the books with so much bribery money going out of the door. So, how did they do this?
Well, Chinese authorities have learned that GSK simply inflated drug prices by declaring high cost at Chinese customs.
Authorities found that GSK’s drugs were being sold to China at prices that far exceeded the prices they charges other countries, sometimes as much as 8 times. [Fig 1]
I’m guessing that this wasn’t just down to Reilly, he must have had help from elsewhere, from senior management in the UK perhaps?