FINANCIAL TIMES: … A widening Chinese investigation into bribery and corruption in the pharmaceutical industry has so far led to the detention of more than a dozen employees of GlaxoSmithKline in China, and is expected to affect other companies as well. Sir Andrew Witty, GSK chief executive, has warned investors of the potential effect of the investigation, which is focusing on deals totalling Rmb3bn ($488m).
So far no Chinese companies have been named in the industry-wide investigation, even though the practice of bribing doctors, hospital administrators and health officials is rampant.
“All foreign and domestic pharmaceuticals operating in China are equally corrupt,” said one senior health official in Beijing, who asked not to be named. “There are many methods used to pay bribes but the majority of the money goes to the government to convince them to approve new drugs. Hospitals and doctors end up with a relatively small share of corruption proceeds.”… (more)
EDITOR: Seems like the Chinese are emulating U. S. style Capitalism.
