GlaxoSmithKline PLC GSK China Investigation Outcome (1200S)
19 September 2014 - 6:06PM
UK Regulatory
TIDMGSK
RNS Number : 1200S
GlaxoSmithKline PLC
19 September 2014
Issued: Friday 19 September 2014, London UK - LSE
Announcement
GSK China Investigation Outcome
GlaxoSmithKline plc (GSK) today announced that the Changsha
Intermediate People's Court in Hunan Province, China ruled that GSK
China Investment Co. Ltd (GSKCI) has, according to Chinese law,
offered money or property to non-government personnel in order to
obtain improper commercial gains, and been found guilty of bribing
non-government personnel. The verdict follows investigations
initiated by China's Ministry of Public Security in June 2013.
As a result of the Court's verdict, GSKCI will pay a fine of
GBP297 million (3 billion RMB at a currency exchange rate of
10.0980) to the Chinese government. This will be funded through
existing cash resources. Associated costs and charges related to
restructuring will be included in GSK's third quarter update.
The illegal activities of GSKCI are a clear breach of GSK's
governance and compliance procedures; and are wholly contrary to
the values and standards expected from GSK employees. GSK has
published a statement of apology to the Chinese government and its
people on its website (www.gsk-china.com).
GSK has co-operated fully with the authorities and has taken
steps to comprehensively rectify the issues identified at the
operations of GSKCI. This includes fundamentally changing the
incentive program for its salesforces (decoupling sales targets
from compensation); significantly reducing and changing engagement
activities with healthcare professionals; and expanding processes
for review and monitoring of invoicing and payments.
GSK Chief Executive Officer, Sir Andrew Witty said: "Reaching a
conclusion in the investigation of our Chinese business is
important, but this has been a deeply disappointing matter for GSK.
We have and will continue to learn from this. GSK has been in China
for close to a hundred years and we remain fully committed to the
country and its people. We will continue to expand access to
innovative medicines and vaccines to improve their health and
well-being. We will also continue to invest directly in the country
to support the government's health care reform agenda and long-term
plans for economic growth."
GSK - one of the world's leading research-based pharmaceutical
and healthcare companies - is committed to improving the quality of
human life by enabling people to do more, feel better and live
longer. For further information please visit www.gsk.com.
GSK enquiries:
UK Media enquiries: David Mawdsley +44 (0) 20 8047 (London)
5502
Simon Steel +44 (0) 20 8047 (London)
5502
US Media enquiries: Stephen Rea +1 215 751 4394 (Philadelphia)
Sarah Alspach +1 202 715 1048 (Washington)
Analyst/Investor Ziba Shamsi +44 (0) 20 8047 (London)
enquiries: 5543
Tom Curry + 1 215 751 5419 (Philadelphia)
Gary Davies +44 (0) 20 8047 (London)
5503
James Dodwell +44 (0) 20 8047 (London)
2406
Jeff McLaughlin +1 215 751 7002 (Philadelphia)
Cautionary statement regarding forward-looking statements
GSK cautions investors that any forward-looking statements or
projections made by GSK, including those made in this announcement,
are subject to risks and uncertainties that may cause actual
results to differ materially from those projected. Such factors
include, but are not limited to, those described under Item 3.D
'Risk factors' in the company's Annual Report on Form 20-F for
2013.
Registered in England & Wales:
No. 3888792
Registered Office:
980 Great West Road
Brentford, Middlesex
TW8 9GS
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLMPTMBMBMAI
Gsk (LSE:GSK)
Historical Stock Chart
From Apr 2024 to May 2024
Gsk (LSE:GSK)
Historical Stock Chart
From May 2023 to May 2024