Some executives may have broken the law, says GlaxoSmithKline

Some executives may have broken the law, says GlaxoSmithKlineBritish drugs giant, GlaxoSmithKline (GSK) has reportedly admitted to the Chinese authorities that some of its executives might have broken the law in China.

Police in China had accused GSK of bribing officials and doctors on Monday for increasing sales and the prices of medicines in the Chinese markets. It has been alleged that the company paid up to 3 billion yuan or $489 million to 700 travel agencies and consultancies for facilitating the transfer of bribes. Chinese authorities are investigating investigations of a wrong practices and crackdown on bribery in the pharmaceutical industry in China.

Britain's biggest drug-maker has shown that it is taking the situation seriously by sending top three officials to the country, which is an important and fast growing market for the industry. GSK also said that it is concerned over the allegations against it operations in China. Chief Executive Andrew Witty has sent Abbas Hussain, GSK President Emerging Markets as well as the group's global head of internal audit and a senior legal official to China for controlling the crisis.

China's National Health and Family Planning Commission s announced that 39 hospital employees in China's southern Guangdong province will face punishment for accepting 2.82 million yuan from two pharmaceutical companies from January 2010 to December 2012. The authority did not name the companies involved in the investigations.