Chinese State Media Reveals Details Of GSK Scandal

China's state media on Friday (July 26) revealed details of alleged bribery violations by some Chinese executives of British drugmaker GlaxoSmithKline (GSK).

A man surnamed Li was a regional sales manager at GSK China in central Henan province, and in charge of selling respiratory drugs to more than 10 hospitals in the provincial capital city of Zhengzhou, according to official news agency Xinhua.

He told Xinhua a GSK China salesperson, before taking post, will receive special training not only on information of specific drugs, but also sales skills and methods, especially how to maintain relations with hospitals and doctors.

When they start, GSK salespeople will be given 10,000 yuan ($1,667 USD) of funds, and a list of doctors' names from all across the country and their profiles, he said.

Li told Xinhua that about seven to 10 percent of the sales volume went to doctors' pockets and the cost was borne by the patients.

A woman identified as Ms Wang, a 35-year-old saleswoman working under Li, told Xinhua that sex bribes were offered to doctors too.

China has long been known for a culture in which drug companies make payments to doctors, since physicians rely on rewards for writing prescriptions to offset meagre salaries.

Those practices, however, are increasingly at odds with a crackdown on corruption under President Xi Jinping, leaving companies struggling to toe the line while not losing business in a highly competitive market.

GSK is the latest in a string of multinationals to be targeted by Chinese authorities over alleged corruption, price-fixing and quality controls.

Presented by Adam Justice