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GSK emerging markets head sent to handle China crisis -source

Fri, 19th Jul 2013 11:09

LONDON, July 19 (Reuters) - GlaxoSmithKline has sentits head of emerging markets to China to lead the drugmaker'sresponse to an unfolding crisis over alleged bribery andcorruption, a person familiar with the situation said on Friday.

Abbas Hussain, GSK President Emerging Markets, wasdespatched by Chief Executive Andrew Witty, along with thegroup's head of internal audit and a senior legal official, thesource said. The executives have now arrived in the country.

GSK has also hired auditors Ernst & Young to carry out anindependent review of its systems in China in the wake of thescandal, another source said on Wednesday.

On Monday, Chinese police accused GSK of bribing officialsand doctors to boost sales and raise the price of its medicinesin China. They said GSK transferred up to 3 billion yuan ($489million) to 700 travel agencies and consultancies over six yearsto facilitate the bribes.

Britain's biggest drugmaker has said it was deeply concernedby the developments, which it called "shameful".

China has detained four senior Chinese executives and bannedGSK's finance chief in China, Steve Nechelput, from leaving thecountry.

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