"Certain senior executives of GSK China who know our systems well, appear to have acted outside of our processes and controls which breaches Chinese law," said Abbas Hussain, GSK President International Europe, Japan, Emerging Markets Asia Pacific in a statement Monday.
Hussain flew to China last week to deal with the crisis which has seen four of GSK's executives questioned and Steve Nechelput, the finance director of the GSK China unit, banned from leaving the country.
GSK acknowledged on Thursday that Nechelput has been subject to a travel ban since the end of June..
Hussain said he had had a very constructive meeting with the Chinese Ministry of Public Security to discuss their investigation into GSK:
"We have had a very constructive meeting with the Ministry of Public Security, and we are very grateful for their time. GSK is taking this situation extremely seriously and that is why we are here.
"Certain senior executives of GSK China who know our systems well, appear to have acted outside of our processes and controls which breaches Chinese law. We have zero tolerance for any behaviour of this nature."
The acknowledgement comes as GSK says it is co-operating with a Chinese investigation into alleged bribing of doctors to prescribe the firm's drugs.
In a remedial step, the pharmaceutical company said it would cut medicine prices for Chinese patients.
Chinese investigations have so far revealed that GSK executives had paid money to doctors and health officials to boost sales and raise prices of the drugs. The funds were fictitiously routed through a travel agency handling exotic holidays..
"I want to make it very clear that we share the desire of the Chinese authorities to root out corruption wherever it exists. We will continue to work together with the MPS and we will take all necessary actions required as this investigation progresses," said Hussain in a statement.
"We fully support the efforts of the Chinese authorities in their reforms of the medical sector and stand ready to work with them to make the changes for the benefit of patients in China. We will actively look at our business model to ensure we make a significant contribution to meeting the economic, healthcare and environmental needs of China and its citizens.."
The British company stated that the savings generated due to the proposed changes in GSK's operational model will be passed to the consumers through price reductions, "ensuring our medicines are more affordable to Chinese patients."
Hussain said the company would be working with the Chinese authorities to root out corruption wherever it exists
Last week, police in China said GSK had transferred 3billion yuan ($489million) to travel agencies and consultancies to facilitate bribes to doctors.
Chinese authorities have taken into custody four Chinese executives at GSK in connection with the allegations.
They have accused GSK of using travel agencies to bribe government officials, doctors and hospitals in order to boost sales and prices of their drugs. The investigation began at the end of June, police said.
One of the four executives, vice-president and operations manager Liang Hong admitted on state television (on 16 July) that he had funneled money through travel agencies for arranged conferences, some of which were never held.
GSK's general manager for China, Mark Reilly, is said to have left the country for Britain last month.
The Chinese authorities have said that similar transfers were made by other pharmaceutical multinationals, but without naming any.
Meanwhile, rival AstraZeneca said one of its staff was also being questioned.
In a statement, AstraZeneca said in a statement that it "can confirm that it was visited by the Shanghai Public Security Bureau - Huangpu Branch regarding a local police matter focused on a sales representative.
"We believe that this investigation relates to an individual case and while we have not yet received and update from the Public Security Bureau, we have no reason to believe it's related to any other investigations."
A British Foreign Office spokesman said: "We are aware of the detention of a British national in Shanghai. We are providing consular assistance to the family."
Source: http://www.jakartanews.net/index.php/sid/215993262/scat/3a8a80d6f705f8cc
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