China has imposed a travel ban on a British national and vice president
of GlaxoSmithKline Steve Nechelput in view of ongoing investigations into
charges that the pharmaceutical giant , sources said. The company has been
accused of funnelling nearly $500 million to bribe doctors and hospital
The move comes after GSK's vice president of operations , Liang Hong (49) appeared in a dishevelled state on the state television admitting that the company had used bribery to sell its products. Liang is among the four executives detained by the police and may have been speaking from his detention cell.
"Having spent time reflecting over the past couple of days, I think the money we spent to run our business was too much," Liang said. "All of these costs (of our bribery) were included in the price of the drugs. The money we spent running the business accounted for about 20% to 30% of the drug price."
The Chinese government has been under pressure with a large number of people complaining about high prices of drugs and medical treatment.
Liang's statement gives the government an opportunity to explain the reason behind high medicine prices, sources said.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- U.S. to Relinquish Gov't Control Over Internet
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?