China has wrapped up a 10-month bribery investigation into pharmaceutical giant GlaxoSmithKline's operations there, resulting in bribery charges against the former head of GSK China, according to Chinese law enforcement and published reports.

Mark Reilly, a British national who served as managing director of GSK China, is accused of ordering subordinates to commit bribery in order to boost drug sales for the U.K.-based company, according to the official Chinese news service Xinhua. Xinhua reported that law enforcement officials had finished a 10-month bribery investigation involving GSK, and found that Reilly allegedly pressed his sales teams to bribe hospitals, doctors, and other health-care institutions, resulting in billions of yuan in increased revenue.

Reilly and two other GSK executives, Zhang Guowie and Zhao Hongyan, also are suspected of bribing industry and commerce department officials in Beijing and Shanghai, Xinhua reported. The case now has been turned over to Chinese prosecutors.

Last summer when news of the investigation broke, Xinhua reported that allegations included cash payments to doctors in the form of “bonuses” or phony lecture fees, as well as free travel and other gifts.

Reilly has not been arrested, but has to remain in China, according to the Wall Street Journal. The Journal reported that Reilly remains a GSK employee, but was replaced as head of the pharmaceutical company's China operations last July, shortly after the company was publicly accused of bribery, in order to focus on the investigation.

A spokesman for the British consulate in Shanghai told Reuters that officials have been in “regular contact” with Reilly and are providing assistance to him.

A statement released by GSK last week did not mention Reilly by name, but said the company continues to cooperate in the investigation. The sternly worded statement said the company has a “zero tolerance” policy for the alleged behavior.

“We are deeply concerned and disappointed by these serious allegations of fraudulent behavior and ethical misconduct by certain individuals at the company and third-party agencies. Such behavior would be a clear breach of GSK's systems, governance procedures, values, and standards,” the statement said. “GSK shares the desire of the Chinese authorities to root out corruption. These allegations are shameful and we regret this has occurred.”

The statement also said that the British-based drugmaker is taking some immediate steps, including reviewing all third-party agency relationships, halting the use of travel agencies that have been identified during the investigation, and conducting an in-depth review of all historic transactions related to the use of travel agencies. GSK promised to conduct a “rigorous review” of its compliance procedures in China.

GSK went on to say that the company respects the laws and regulations in China, and “expects all staff to abide by them.”

It would not be surprising if GSK itself also gets hit with charges and fines in the bribery scandal despite its cooperation in the investigation, lawyer Steven Dickinson, a partner with Harris Moure in Qingdao, told Reuters. “But the thing is, you can't put a company in jail and they want someone in jail. They want Mr. Reilly in jail for about 10 years,” Dickinson was quoted as saying by Reuters. Charges against the company could result in it being stripped of its business license there.

Reuters reported that bribery convictions can result in a life sentence, but the Wall Street Journal said Reilly faces between three and 10 years in prison if convicted.

Industry observers and officials indicated to Reuters this week that the charges against GSK executives could be just the tip of the iceberg in a sweeping crackdown on big pharma companies that have been experiencing big growth in China. Last year, several other drugmakers were visited by Chinese officials, including Novartis, AstraZeneca, and Sanofi, Reuters reported.

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