China Fines GSK Nearly $500 Million on Bribery Charges

GlaxoSmithkline (GSK), the UK's largest pharmaceutical producer, will pay the Chinese government nearly $500 million in fines after being found guilty of offering bribes to healthcare workers.

Acknowledging that its local management had broken the law and also violated company rules, GSK has apologized to Chinese patients, doctors and hospitals and to the Chinese government.

The company said it is working to end corruption, with planned measures to include changing the incentives offered to sales staff along with procedures for reviewing invoices and payments.

GSK had been under investigation by Chinese authorities since last year after being accused of offering millions of dollars in bribes to officials in exchange for permission to raise prices.

Mark Reilly, former head of the drugmaker's Chinese operation, has received a three-year suspended prison sentence and will be deported.