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UPDATE 3-China widens drug industry probe, visits Belgium's UCB

Fri, 19th Jul 2013 08:51

* UCB's Shanghai office visited by anti-trust body SAIC

* UCB says it one of several pharma companies inspected

* Follows accusations of large-scale bribery by GSK

* China taking tough line on several industry sectors

By Ben Deighton and Ben Hirschler

BRUSSELS/LONDON, July 19 (Reuters) - Belgian drugmaker UCB has been visited by Chinese authorities as the countrywidens investigations into bribery by drugmakers, followingallegations against Britain's GlaxoSmithKline.

A spokesman for UCB said on Thursday that officials werealso investigating other drug companies with operations in thecountry, although he did not identify them.

A number of international firms - including Novartis, Roche, Johnson & Johnson andAstraZeneca - denied any knowledge of being investigatedfollowing the UCB news.

Chinese police have accused GSK of bribing officials anddoctors to boost sales and raise the price of its medicines,marking a hardening stance against malpractice by multinationalsoperating in the country.

"They've been launching inspections with several pharmacompanies active in the country, both Chinese and foreigncompanies such as ours, and as part of the process our Shanghaioffice was visited by the agency in the last 48 hours," the UCBspokesman said.

UCB is a medium-sized pharmaceuticals company with aparticular strength in epilepsy treatment.

The officials visiting the group's office were from theState Administration for Industry and Commerce (SAIC) and wereseeking information on compliance, he said.

The SAIC is one of China's main three anti-trust regulatorsin charge of market supervision.

Its investigations often overlap with the country's topwatchdog, the National Development and Reform Commission, whichhas recently launched a pricing investigation into local andinternational drugmakers, including GSK, Merck andAstellas Pharma.

China on Monday accused GSK of transferring up to 3 billionyuan ($489 million) to 700 travel agencies and consultancies tofacilitate bribes - an allegation Britain's top drugmaker saidit was deeply concerned about and which it called "shameful".

The official Xinhua news agency said on Thursday thatauthorities in Shanghai had suspended the business of theShanghai Linjiang International Travel Agency, one of thebusinesses linked to GSK.

The tough Chinese action against GSK, including thedetention of four senior Chinese executives and a ban on a topBritish executive leaving the country, has sent a chill throughthe wider pharmaceutical sector.

There has been widespread speculation that othermultinational companies would be drawn into the corruptioninvestigations.

"This is bigger. This is not just GSK. The entire industryis on a journey here," one European drug industry executivesaid.

CORPORATES UNDER FIRE

The GSK investigation is the highest-profile corporate probein China since four executives from mining giant Rio Tinto were jailed in March 2010 for taking bribes andstealing commercial secrets. Three of those executives wereChinese while the fourth was a Chinese-born Australian.

Beijing has targeted corporations on multiple fronts in thepast few months, including over alleged price-fixing, qualitycontrols and consumer rights.

European food groups Nestle and Danone said they would cut infant milk formula prices in China afterBeijing launched an inquiry into the industry.

And on Friday the official People's Daily newspaper reportedthe Chow Tai Fook Jewellery Group, the world's biggestjewellery retailer by market value, was among a number of goldshops being probed for price fixing.

Past improper payouts in China have also landed otherWestern drugmakers in trouble - although with U.S. rather thanChinese authorities.

In the last year Pfizer and Eli Lilly haveboth settled with Washington, without admitting wrongdoing, overalleged corrupt payments in foreign markets, including China. More cases under the U.S. Foreign Corrupt Practices Act arepending.

China is increasingly important for big drugmakers, whichrely on growth in emerging markets to offset slower sales inWestern markets. IMS Health, which tracks pharmaceuticalindustry trends, expects China to overtake Japan as the world'ssecond-biggest drugs market behind the United States by 2016.

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31 Jan 2024 07:46

LONDON BRIEFING: Stocks called up; GSK revenue and profit up

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29 Jan 2024 08:51

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(Alliance News) - GSK PLC on Monday celebrated regulatory progress for two of its products in the EU.

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29 Jan 2024 07:43

LONDON BRIEFING: Superdry looks at saving costs; Ferrexpo loses case

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29 Jan 2024 07:07

GSK gets EU approval to sell blood cancer treatment Omijara

(Sharecast News) - Biopharma giant GSK has been given the green light by European regulators to sell Omjjara, its treatment for patients with a rare type of blood cancer.

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26 Jan 2024 10:47

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24 Jan 2024 15:08

Private equity firm Yellow Wood close to deal to acquire ChapStick-sources

Jan 24 (Reuters) - Private equity firm Yellow Wood Partners is in advanced talks to acquire ChapStick, a lip balm brand, from Haleon Plc, the former consumer health division of drug developer GSK Plc, four people familiar with the matter said.

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24 Jan 2024 14:34

UK earnings, trading statements calendar - next 7 days

Thursday 25 January 
Britvic PLCTrading Statement
Conduit Holdings LtdTrading Statement
CVS Group PLCTrading Statement
Dr Martens PLCTrading Statement
Fevertree Drinks PLCTrading Statement
Foxtons Group PLCFull Year Results
Fuller, Smith & Turner PLCTrading Statement
Halfords Group PLCTrading Statement
Idox PLCFull Year Results
IG Group Holdings PLCHalf Year Results
Intermediate Capital Group PLCTrading Statement
Mitie Group PLCTrading Statement
NCC Group PLCHalf Year Results
Newmark Security PLCHalf Year Results
Next 15 Group PLCTrading Statement
PPHE Hotel Group LtdTrading Statement
Secure Trust Bank PLCTrading Statement
St James's Place PLCTrading Statement
Time Finance PLCHalf Year Results
Titon Holdings PLCFull Year Results
Wizz Air Holdings PLCQ3 Results
Workspace Group PLCTrading Statement
Friday 26 January 
Paragon Banking Group PLCTrading Statement
Record PLCTrading Statement
Superdry PLCHalf Year Results
Taylor Maritime Investments LtdTrading Statement
WH Smith PLCTrading Statement
YouGov PLCTrading Statement
Monday 29 January 
Team Internet Group PLCTrading Statement
Tuesday 30 January 
Diaceutics PLCTrading Statement
Diageo PLCHalf Year Results
Kromek Group PLCHalf Year Results
Luceco PLCTrading Statement
Oxford Cannabinoid Technologies Holdings PLCHalf Year Results
Pets at Home Group PLCTrading Statement
Renewi PLCTrading Statement
Saga PLCTrading Statement
SSP Group PLCTrading Statement
SThree PLCFull Year Results
Synthomer PLCTrading Statement
Wednesday 31 January 
Aberforth Smaller Companies Trust PLCFull Year Results
abrdn Private Equity Opportunities Trust PLCFull Year Results
Ecora Resources PLCTrading Statement
GSK PLCFull Year Results
ITM Power PLCHalf Year Results
NWF Group PLCHalf Year Results
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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22 Jan 2024 21:22

Fate of most remaining Zantac lawsuits weighed by Delaware judge

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22 Jan 2024 17:08

Fate of most remaining Zantac lawsuits weighed by Delaware judge

Jan 22 (Reuters) - GSK, Pfizer and other pharmaceutical companies will urge a judge in Delaware this week to find that evidence plaintiffs' lawyers want to use in about 72,000 lawsuits claiming that the discontinued heartburn drug Zantac caused cancer is not supported by science.

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17 Jan 2024 09:38

UPDATE: GSK raises GBP978 million as cuts stake in Haleon to 4.2%

(Alliance News) - GSK PLC early Wednesday confirmed it agreed to sell 300 million shares in Haleon PLC, reducing its remaining stake in the consumer healthcare products spin-off to just 4.2%.

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17 Jan 2024 08:05

GSK raises £978m through Haleon share sale

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17 Jan 2024 07:46

LONDON BRIEFING: UK inflation surprises as unexpectedly rises to 4.0%

(Alliance News) - Stocks in London are called to open lower on Wednesday, following some hotter-than-expected consumer price data from the UK.

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17 Jan 2024 07:31

GSK raises $1.24 bln from latest Haleon stake sale

Jan 17 (Reuters) - GSK has raised 978 million pounds ($1.24 billion) from a discounted sale of a stake in its spun-off consumer healthcare business Haleon, the British drugmaker said on Wednesday.

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