19th Sep 2014 08:21
LONDON (Alliance News) - GlaxoSmithKline PLC Friday said a Chinese court has ruled its GSK China Investment Co Ltd arm has broken Chinese law and will pay a GBP297 million fine.
Glaxo said the Changsha Intermediate People's Court in Hunan Province ruled GSK China had, under Chinese law, offered money or property to non-government personnel in order to obtain improper commercial gains, and been found guilty of bribing non-government personnel. The ruling comes after the China Ministry of Public Security first initiated investigations in June 2013.
GSK China will pay a GBP297 million fine to the Chinese government. Glaxo said the associated costs and charges related to the fine will be included in its third-quarter update.
Glaxo said the illegal activities of GSK China are a clear breach of its governance and compliance procedures and not in keeping with the values and standards of the company.
"Reaching a conclusion in the investigation of our Chinese business is important, but this has been a deeply disappointing matter for GSK. We have and will continue to learn from this," said Andrew Witty, Chief Executive of Glaxo.
Glaxo shares were up 0.6% to 1,444.5 pence on Friday, amid a strongly up London market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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