GlaxoSmithKline plc (ADR) (NYSE:GSK) could be involved in breaking an anti-bribery law in its Chinese consumer healthcare unit and the probe might raise some legal concerns for the company.
GlaxoSmithKline plc (ADR) (NYSE:GSK) faced a U.S. anti-bribery inquiry in 2012, as indicated in its internal documents. Further, even the company did an internal investigation to find out any faulty procurement practices in its Chinese unit. The management revealed that there were no conclusive results indicating “unethical conduct.” As reported by Reuters, GlaxoSmithKline plc (ADR) (NYSE:GSK) was investigating some specific people and suppliers working in its Chinese unit in 2012.
Simon Steel, Spokesman for GlaxoSmithKline plc (ADR) (NYSE:GSK), said,
“The preservation notices issued in 2012 relate to allegations around adherence to procurement policies within our Chinese consumer healthcare business. We investigated using resources inside and outside the company and did not find evidence of unethical conduct, but did identify some non-compliance with our procurement procedures and remedial action was taken as a result.”
According to the experts, a thorough U.S. investigation/probe might lead to a multi-million dollar fine for GlaxoSmithKline plc (ADR) (NYSE:GSK).
Consumer healthcare is one of the primary segments of GlaxoSmithKline plc (ADR) (NYSE:GSK) and it was responsible for one-fifth of the overall turnover of the company last year ($8.6 billion). However, this is not the first incident where the company is facing trouble concerning to legal issues as the company is facing similar bribery allegations in Iraq, Poland, Syria, Lebanon, and Jordon. Even the Chinese police accused GlaxoSmithKline plc (ADR) (NYSE:GSK)’s executives of bribery last year.
Earlier, the company reported a successful vaccine test on monkeys for Ebola virus and was involved in human trials of the same.
This article has been written by Prakash Pandey.
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