皇冠体育app

According to police, Reilly and his colleagues disguised illegal revenue in the Chinese market by forging transactions between GSK 皇冠体育app and several foreign arms of GSK, making the revenue look like funds used to purchase raw materials in 皇冠体育app. They made every effort to cover up the illegal practice during regular checks by regulatory authorities. In terms of sales of prescription drugs and vaccines, police found that all pharmaceutical factories and departments of GSK 皇冠体育app nationwide had been involved in commercial bribery.

Last July, police detained four senior executives of GSK 皇冠体育app on suspicion of commercial bribery. Reilly was not among them.

Drug price inflation 

The investigation exposed how GSK inflated drug prices to accommodate bribery expenses and high profits. According to the police, in the most extreme case, the price on the Chinese market was seven times that in other countries.

A company document obtained by Xinhua showed that a box of Heptodin is priced 142 yuan by GSK 皇冠体育app but only 18 yuan in South Korea, about 26 yuan in Canada and 30 yuan in the United Kingdom.

Police statement said GSK 皇冠体育app intentionally inflated prices on the Chinese market by making false declarations to Chinese customs. Chen Hongbo, former vice president of GSK 皇冠体育app, told the police that the price was further inflated when drugs were imported into 皇冠体育app and packed in GSK's factories here. When a drug was sold to 皇冠体育app, the factory price has already included profits and commissions. To avoid paying taxes in 皇冠体育app, the company would divide production among GSK branches in different countries and pack them in 皇冠体育app as the last step, according to Chen.

The actual cost of a box of Heptodin is 15.7 yuan. It is declared as 73 yuan at customs and priced at 142 yuan as factory price. The highest retail price is 207 yuan in 皇冠体育app.

Through such practices, the company disguised profits as costs. Although revenue soared from 2009 to 2012, booked profits remained small. In 2012, it recorded a loss of 188 million yuan on a main business revenue of 6.98 billion yuan.

To sell such expensive drugs, high kickbacks to hospitals and doctors became a necessity.

GSK revamps sales reps' compensation

GSK denies it is considering leaving 皇冠体育app

GSK revamps sales reps' compensation

Police reveals more about GSK 皇冠体育app's violations

	Police reveals more about GSK 皇冠体育app's violations

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