GlaxoSmithKline PLC is investigating claims its employees bribed
doctors in Jordan and Lebanon by offering perks such as flexible
travel arrangements and free samples that doctors could sell on,
according to emails reviewed by The Wall Street Journal.
The probe is the latest to emerge at the British pharmaceutical
giant, which has opened a broad investigation into its practices in
the Middle East. Earlier this month, the Journal reported Glaxo had
received emails alleging its employees had bribed doctors in Iraq.
Separately, Chinese and Polish authorities are investigating
alleged bribery of doctors by Glaxo representatives in those
markets.
In a statement, Glaxo said that it takes all bribery allegations
seriously, has zero tolerance for unethical or illegal behavior,
and has strict controls in place with regard to compliance matters
and antibribery and corruption.
"In total, we employ around 200 people in Jordan, Lebanon and
Iraq in our pharmaceuticals operations and these allegations relate
to a small number of individuals in these countries," the statement
said.
Glaxo said that it is confident it doesn't have a systemic issue
with unethical behavior. The company reported 161 breaches of its
sales and marketing policies last year, a number it says is similar
to its peers.
Glaxo has said it has launched an internal investigation into
its operations in the United Arab Emirates, Qatar, Bahrain, Oman,
Kuwait, Lebanon, Syria, Jordan and Iraq.
Chinese authorities last summer accused Glaxo of bribing doctors
and have opened their own probe. Glaxo has said it appears that
some its senior staff in China may have broken the law and that it
is cooperating with the investigation.Ã
This week, Poland's anti corruption bureau said it is
investigating alleged bribery of doctors by Glaxo employees between
2010 and 2012 and has so far charged 13 people. Glaxo said an
internal investigation into the matter found evidence of
inappropriate behavior by just one employee, whom it disciplined in
2011.
A person first contacted Glaxo in December about its practices
in Jordan and Lebanon. This person detailed the alleged bribery in
a series of emails to company representatives, reviewed by the
Journal.
Glaxo sales representatives allegedly bribed doctors in Jordan
to prescribe Glaxo drugs by issuing free samples that the doctors
were then allowed to sell on, according to the emails.
Glaxo representatives also allegedly permitted Jordanian doctors
to bring their spouses on business trips that Glaxo paid for,
according to the emails. Doctors were issued with business-class
tickets to attend conferences but would exchange them at travel
agencies for two economy-class tickets, allowing their spouses or
other family members to come along free, a practice local Glaxo
employees were aware of, according to the emails.
Glaxo said that it is against company policy to allow airplane
tickets to be exchanged for tickets of a lower value or
refunded.
The emails allege Glaxo sales representatives gave doctors in
Jordan up to 60 free samples of its vaccine Synflorix, which they
then sold on at up to $70 a vial.
In Lebanon, Glaxo employees allegedly gave doctors free
Synflorix vials as part of an incentive scheme to get them to
prescribe the vaccine and not its competitors, another email to
company representatives said. In both countries, Glaxo made
payments to "key opinion-leader" doctors--influential and leading
practitioners in their field--for lectures and other speaking
engagements that may not have taken place, the emails allege, in
return for them prescribing more Glaxo drugs.
Glaxo said it has reinforced governance requirements in the nine
Middle East countries its investigations have focused on, including
payments to doctors and travel agencies, provision of samples and
processes around public-tender submissions, such as the awarding of
government vaccine contracts, as well as putting a temporary stop
to interactions with government officials in the region where they
involve a payment.
Glaxo said in December it was stopping all payments to doctors
globally to attend conferences or speak about its drugs--a policy
it expects to be in place around the world by 2016.
Write to Hester Plumridge at Hester.Plumridge@wsj.com and
Christopher Matthews at christopher.matthews@wsj.com
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