Friday, July 4, 2014

GSK bribe and Honeytrap

GlaxoSmithKline (GSK) China is blamed as it is suspected to have made use of bribes. After this suspicion was pointed out, GSK admitted a part of the allegation. Some executives in GSK were detained by the police.

BBC: Systematic bribery at GlaxoSmithKline China 'credible' - investigator

Mark Reilly, the chief executive of GSK China seemed to be threatened also by a sex-tape recorded secretly. Simultaneously, whistle blowing e-mails were sent to GSK executives. GSK hired a private investigator to identify the blackmailer. However, this investigator was arrested by Chinese police as an illegal gathering personal information.

The Wall Street Journal: Sex Video of GlaxoSmithKline China Executive Led to Hiring of Private Sleuths

The Chinese government is going to be opposed entirely to GSK. It considers that GSK has thrust up the cost of pharmaceutical products.

I think this case is quite complicated and misleading. GSK, blackmailer, and Chinese governments have each intention in this situation.

In general, pharmaceutical companies tend to maximize their profit with all methods available, because the cost to develop a new drug is astronomical. In Japan, an employee of Novartis Pharma was arrested for violating the Pharmaceutical Affair Law. He is deemed to manipulate some data in academic articles which prove the effectiveness of a drug established by the company he belongs. Not only the employees but also many independent researchers are concerned to this scandal.

For many businesspersons, this case suggests that doing a business in China is considerably risky. The Chinese government took a strong leadership to deal with this scandal. It is not certain that when its power will be against other foreign companies.

GSK is so big that there are many enemies against it in everywhere. On the other hand, it is unavoidable for doctors to form some conflict of interests with companies. It is true that both GSK and Novartis have created many valuable drugs. I am rather sympathetic to GSK, even if its act is breaching the clinical ethics.


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