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By Ben Hirschler
LONDON, Oct 16 (Reuters) - Mark Reilly, GlaxoSmithKline's former head of operations in China, is helpinganti-corruption officials in the country who are investigatingallegations of extensive bribery by the drugmaker.
One person familiar with the situation said Reilly had beenrequested to remain in China while the investigations proceededand was happy to do so.
Both GSK and the British Embassy in Beijing said onWednesday that Reilly had not been detained by Chineseauthorities. An embassy spokesman said it was in regular contactwith him and was providing consular assistance.
Reilly was replaced as GSK's China head on July 25 afterChinese police accused the drugmaker of funnelling up to 3billion yuan ($490 million) to travel agencies to facilitatebribes to doctors and officials.
GSK said at the time that he would continue to help lead itsresponse to the bribery investigation.
"Mark is working closely with the Chinese authorities toconduct a thorough investigation and voluntarily returned toChina to help them," a GSK spokesman said.
"Several weeks ago he met with the Chinese authorities inChangsha to provide them with information and assistance. At nopoint was he detained. Mark remains in China to help furtherwith the investigation should it be required."
A number of Chinese employees of GSK have been detained,including four senior members of the local management team. Butthe authorities have not detained any foreign nationals workingfor the drugmaker.
The police allegations against GSK, laid out in detail onJuly 15, sent shockwaves through the industry and cast doubtover GSK's ability to ensure compliance standards infast-growing markets like China.
The crackdown reflects a growing determination by Chineseauthorities to stamp out corporate bribery and corruption, whichcan drive up prices for consumers.
GSK has admitted that some Chinese executives appeared tohave broken the law and has said it plans to change its businessmodel to lower the cost of medicines in the country.
Several other international drugmakers, including Sanofi, Novartis, AstraZeneca, Eli Lilly and Bayer have also been visited by Chineseofficials - and the episode has hit sales in the Chinesepharmaceutical market.
Analysts at Deutsche Bank said on Tuesday that theanti-bribery campaign was likely to last for some time,impacting both multinational and domestic drug companies.
GSK will report third-quarter results on Oct. 23, when thescale of the impact of the affair on its business in China isexpected to be revealed.
