LONDON (Alliance News) - GlaxoSmithKline PLC is investigating allegations of improper conduct in its Iraq business, a spokesperson for the company confirmed Monday.
"We have zero tolerance for unethical or illegal behaviour," the spokesperson said in a statement.
The spokesperson noted that it employs less than 60 people in its Iraq pharmaceuticals operation, and the allegations related to a small number of individuals in the country. The investigations are ongoing.
The statement followed a report from the Wall Street Journal, which cited a person familiar with the matter saying that Glaxo was violating US and UK anti bribery laws by hiring government employed physicians and pharmacist in Iraq as paid sales representatives to boost the use of its products.
Glaxo introduced changes to its sales and marketing practices last December, dropping individual targets for its sales representatives. The changes are expected to be rolled out worldwide by 2016 The new practices were brought in to "further align the company's activities with the interests of patients."
"We believe these changes will eliminate any perception of conflict of interest and ensure incentives for our employees are aligned with the best interests of patients," the spokesperson said Monday.
"Operating in emerging markets is challenging given the issues many of these countries face with funding and maturity of their respective healthcare systems. However, we continue to believe that with robust compliance systems and, by working closely with local governments, our presence in these markets can help improve access to medicines and broader healthcare," the spokesperson said.
The company is already navigating bribery investigations with Chinese authorities, following allegations that senior Glaxo executives had been involved in payments of up to USD500 million to doctors and hospital executives over the past six years. The allegations have led to the arrest of four Glaxo managers, with several more under house arrest. At the time of reporting its full year results Glaxo reiterated that it was too early to estimate the financial hit from the investigations.
Last Friday the company confirmed that it has sometimes withheld incentive payments to staff in China when it has found potential issues with expenses claims, and has increased its monitoring and checking of claims in the country following bribery investigations by Chinese authorities, according to a spokesman for the company.
Shares in Glaxo were trading down 0.9% at 1,563.24 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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