More foreign drug firms face scrutiny in China

An automated robot arm picks up a bottle

China is reportedly putting more foreign drug firms under scrutiny, state media said on Tuesday, days after the conclusion of a police probe into alleged bribery by employees of Britain’s GlaxoSmithKline (GSK).

Earlier this month, Chinese authorities ended a nearly one-year probe into GSK, accusing a top British executive of ordering employees to commit bribery and handing the case over to prosecutors.

Health authorities in the eastern city of Hangzhou were looking into the business practices of other drug companies, including US-based Eli Lilly, Britain’s AstraZeneca and Novo Nordisk of Denmark, the 21st Century Business Herald newspaper reported, citing an internal document.

But two of the foreign companies named said the Hangzhou health bureau had not notified them of any such moves.

Another company, Swiss pharmaceuticals giant Roche, has previously said that officials from China’s State Administration for Industry and Commerce had visited its offices in Hangzhou. Roche was not cited by the newspaper.

The GSK case came to light in June last year through a local investigation, after police in the central Chinese city of Changsha announced they were examining the company’s employees for “economic crimes”.

The 21st Century Business Herald said Eli Lilly, AstraZeneca and Novo Nordisk were required to conduct self inspections for kickbacks and report to local authorities.

But Eli Lilly on Tuesday denied it had been approached by Hangzhou health authorities.

“Lilly has not been contacted by (the) Hangzhou Health Bureau,” the company said in a statement provided to AFP. “We fully cooperate with any inquiries we receive from (the) government and its agencies in China.”

AstraZeneca offered a similar denial.

“We have not received any official communication on this topic at this time. AZ China cooperates with various Chinese authorities on a regular basis across a wide range of interactions,” it said.

Novo Nordisk declined to comment, adding it would make a statement if an issue was deemed to have material impact on the company.

An official of the Hangzhou health bureau said no one was available to comment.

China’s healthcare sector is widely considered to be riddled with graft, given the opaque tendering system for drugs and doctors’ low salaries.

The government last year launched sweeping probes into alleged malpractice by foreign companies in several sectors, and against the backdrop of an anti-graft campaign backed by President Xi Jinping to root out official corruption.

 

 

 

 

 

Source : Channel News Asia | May 27, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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