GSK's Witty comments on problems in China

On a conference call to discuss the pharma's 2Q13 earnings, GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) CEO Andrew Witty said the ongoing investigation of bribery and tax crimes by GSK executives in China will likely affect the pharma's performance in the country, but said it is "too early to quantify the extent." Witty said "it appears that certain senior managers in the Chinese business have acted outside of our processes and our controls to both defraud the company and the Chinese healthcare system."

Earlier this month, China's Ministry of Public Security arrested several GSK executives after finding evidence they had bribed government officials, foundations, hospitals and doctors. According to a ministry statement, arrested GSK employees have confessed to charges but the case is still under investigation (see BioCentury Extra, July 11). ...