It’s been nearly three years since bribery allegations first pummeled GlaxoSmithKline in China, but the drugmaker still hasn’t been able to keep its name and “corruption” out of the same sentence. Since then, additional claims have popped up in several other countries, and Yemen is the latest to be added to the list.
The company is conducting an internal probe into allegations that its subsidiary in Yemen brought on government workers to influence purchasing decisions and bolster sales of its drugs, Stat reports. On top of that, more than half a dozen employees at the British pharma giant have held paid posts at the government health ministry, as the claims go.
GSK is investigating the allegations “thoroughly,”. The company “welcomes and respects people speaking up where they have concerns and we have a number of channels internally to enable them to do this,”.
Whistleblowers have certainly put those channels to good use over the past few years. Ever since July 2013–when Chinese officials pointed the finger at Glaxo for using travel agents to funnel $489 million in bribes to docs and other healthcare providers–allegations have continued to crop up in countries including Iraq, Syria, Jordan, Poland and Romania.
The claims continue to dog the company’s image, despite its attempts to reform its marketing practices. The pharma giant has done away with common practices like sales rep quotas and doctor speaking fees, moves that have drawn criticism of CEO Andrew Witty.
These days, though, shareholders have bigger fish to fry. High-profile investors have been clamoring for a company-wide breakup that Witty has staunchly refused; in the wake of their demands, the company announced recently that its skipper would step down in March of 2017.
GlaxoSmithKline is conducting an internal investigation into allegations that its subsidiary in Yemen hired government employees to influence purchasing decisions and boost sales of its medicines.
Specifically, more than a half-dozen Glaxo employees allegedly have also held various paid positions — such as pharmacists — at the government health ministry. The allegations are similar to those made two years ago concerning its operations in Iraq.
“GSK has received allegations about staff conduct in Yemen and is investigating them thoroughly,” a company spokesman wrote us. He declined further comment.
Last month, Glaxo distributed a notice to its employees in Yemen — who only number about three dozen — that requires them to preserve documents in connection with United States and United Kingdom inquiries into its business practices in various markets. Pharmalot has reviewed a copy of the notice.
The drug maker is currently being investigated by the US Department of Justice and the US Securities and Exchange Commission for potential violations of the Foreign Corrupt Practices Act. The UK’s Serious Fraud Office is also investigating Glaxo for possible criminal violations of the Bribery Act.
In connection with the US and UK probes, the Glaxo notice mentions that employees must retain documents concerning payments to health care providers and government entities, as well as any “concurrent” employment involving Glaxo personnel.
The notice also required employees in the Yemen subsidiary to preserve documents concerning the Tykerb breast cancer medication, which Glaxo transferred last year to Novartis as part of an asset swap that sent much of the Glaxo oncology business to Novartis in exchange for a vaccines unit.
This is only the latest instance in which Glaxo has conducted an internal probe into business practices in various countries. Over the past two years, the company has also confronted allegations of bribery in Poland, Jordan, Lebanon, and Syria.
The most sensational episode, however, occurred three years ago in China, where GlaxoSmithKline was eventually found guilty by a Chinese court of bribing doctors, hospitals, and other nongovernment personnel and fined more than $490 million.