GSK will no longer pay doctors for promoting its products

GlaxoSmithKlineBritish drug maker GlaxoSmithKline (GSK) has decided to put an end to two very common controversial industry practices - paying doctors to promote the company's products and tying sales representatives' compensation to the number of prescriptions doctors write.

GSK Chief Executive Andrew Witty confirmed on Tuesday that the company would stop paying doctors for promoting its products and also stop tying representative's compensation to number of prescriptions doctors write.

In a telephone interview, Mr. Witty said that the decision was part of the company's effort to ensure it stayed in step with how the world is changing.

Speaking on the topic, he added, "We keep asking ourselves, are there different ways, more effective ways of operating than perhaps the ways we as an industry have been operating over the last 30, 40 years?"

But, the company will keep on paying doctors consulting fees for market research as the company sees it as essential to gain insight from doctors about its various products. Mr. Witty assured that the activity would be restricted in scope.

However, many analysts see the decision as an upshot of a bribery probe in China, where the company is under the regulators' scanner for allegedly making illegal payments to doctors as well as government officials in order to increase drug sales.

Mr. Witty, however, declined to make a comment on the probe as it is still underway.