By Maria Armental
GlaxoSmithKline PLC is being investigated by the United
Kingdom's Serious Fraud Office for possible criminal violations in
its commercial practices, the pharmaceutical company said
Tuesday.
The Brentford, England, multinational said it had been notified
of the criminal inquiry Tuesday and was cooperating with
investigators.
"GSK is committed to operating its business to the highest
ethical standards," the company said in a statement.
No additional information was released. A call to the company
wasn't immediately returned.
The Serious Fraud Office is an independent government department
under the U.K. Attorney General that investigates alleged fraud,
bribery and corruption.
Last year, The Wall Street Journal, citing people familiar with
the matter, reported the U.K.'s Serious Fraud Office was reviewing
bribery allegations Glaxo faces in China.
Chinese authorities are investigating the British drug maker for
allegedly bribing doctors, hospitals and government officials to
sell more drugs in that country. Glaxo has said it is cooperating
with Chinese authorities.
Glaxo has overhauled its operations in China, in July naming a
new head of its China operations, Herve Gisserot, to succeed U.K.
national Mark Reilly, whom Chinese officials have accused of
ordering subordinates to bribe hospital doctors, health-care
organizations and other employees to boost the company's drug
sales.
In December, Glaxo announced a global policy to stop paying
doctors to attend medical meetings or to speak about its drugs and
the diseases treated by its medicines.
Outside of China, Glaxo has opened an investigation into its
practices in the Middle East. The Wall Street Journal reported in
April that Glaxo had received emails alleging its employees had
bribed doctors in Iraq. Glaxo said it is also investigating alleged
bribery of doctors in Jordan and Lebanon. Separately, Polish
authorities have said they are investigating alleged bribery of
doctors by Glaxo representatives.
Glaxo has said it has zero tolerance for unethical or illegal
behavior and has strict controls in place with regard to compliance
matters and antibribery and corruption.
In July, the Journal reported that the U.K.'s Serious Fraud
Office had received allegations from an anonymous tipster, who
accused Glaxo's China-based sales staff of bribing doctors.
The tipster also had sent the allegations to Glaxo, the Journal
reported, sparking an internal investigation. Glaxo had said it
conducted a four-month investigation but found no evidence of
wrongdoing related to the tipster's claims.
Laurie Burkitt and Jeanne Whalen contributed to this
article.
Write to Maria Armental at maria.armental@wsj.com
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