UPDATE 1-GSK sends three executives to China to handle crisis

* Emerging markets head dispatched to country -source

* Joined by head of internal audit and senior legal official

* Bribery scandal threatens GSK reputation, Chinese business

By Ben Hirschler

LONDON, July 19 (Reuters) - GlaxoSmithKline has sentits head of emerging markets and two other top executives toChina to lead the drugmaker's response to an unfolding crisisover alleged bribery and corruption.

Abbas Hussain, GSK President Emerging Markets, wasdispatched by Chief Executive Andrew Witty, along with thegroup's global head of internal audit and a senior legalofficial, a person familiar with the matter said on Friday.

All three have now arrived in the country to cooperate withChinese authorities and try to get to the bottom of a scandalthat has shaken confidence in GSK's internal procedures.

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.

The decision to send the executives shows the seriousnesswith which Britain's biggest drugmaker views a situation thatthreatens its reputation and risks undermining business in abig, fast-growing market.

GSK said it was deeply concerned by the allegations, whichit called "shameful".

The drugmaker has also hired auditors Ernst & Young to carryout an independent review of its systems in China, anothersource said on Wednesday.

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

The episode has left GSK's senior management team in Chinain disarray, with the general manager for China, Mark Reilly,leaving the country on July 5 for what sources said were routinemeetings in London. Reilly has not returned.

Hussain is a key lieutenant of GSK's chief executive,reflecting the importance that Witty places on emerging marketsas future driver of sales for GSK. He joined in June 2008 and isa member of the corporate executive team.

GSK's move to send senior-level reinforcements to Chinacomes as Chinese authorities widen a probe into malpractice bydrug companies.

BELGIUM'S UCB VISITED BY OFFICIALS

Belgian drugmaker UCB - a medium-sized company witha particular strength in epilepsy treatment - said on Thursdayits office in Shanghai had been visited by officials from theState Administration for Industry and Commerce (SAIC) seekinginformation on compliance.

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

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 will be drawn into the corruptioninvestigations.

"This is not just GSK. The entire industry is on a journeyhere," one European drug industry executive said.

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.