China launches fresh pharma probe
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E-mail Shanghai Daily via agencies, August 15, 2013
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GSK and Sanofi are currently under investigation for commercial bribery. [File photo] |
China is intensifying its investigation into alleged bribery in the pharmaceutical and medical services sector with a fresh three-month probe due to begin today.
The investigation by the State Administration for Industry and Commerce, a regulator in charge of market supervision, is aimed at stamping out bribery, fraud and other anti-competitive practices in various sectors, Xinhua news agency reported yesterday.
It comes as other regulators including the National Development and Reform Commission and the police conduct multiple investigations into how foreign and domestic companies do business in the world's second-biggest economy.
Much of the focus has been on the pricing of items from medicine to milk powder and whether companies are violating a 2008 anti-monopoly law.
The SAIC would hand down severe punishments for bribery found in the bidding process for drugs and medical services as that hurt the interests of the Chinese people, Xinhua said.
"Commercial bribery not only leads to artificially high prices, it undermines market order in terms of fair competition and corrupts social morals and professionalism," the SAIC said.
The NDRC, which oversees pricing, is already investigating 60 foreign and domestic pharmaceutical firms over their pricing practices. Its investigation has yet to conclude.
Separately, the SAIC said it wanted to prevent China's industry associations from being the "driving force," or organizers, of monopolistic behavior, an official, Cao Hongying, was quoted by Xinhua as saying.
Of the 12 monopoly cases that China has announced, nine of them were organized by industry associations, Xinhua said.
The latest foreign drugmaker in the spotlight is Switzerland's Novartis, after claims by a former saleswoman that it bribed doctors to boost sales in June and July this year.
Police have detained four Chinese executives with GlaxoSmithKline and questioned at least 18 other staff after allegations that the British drugmaker funnelled up to 3 billion yuan (US$489 million) to travel agencies to facilitate the payment of bribes to doctors and officials.
The health ministry is also investigating drugmaker Sanofi SA over bribery allegations, which the French company has said it was taking "very seriously."
The SAIC investigation will also look into misleading or deceptive marketing practices used by car dealers, placement agencies and real estate agents among others, Xinhua said.
