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GlaxoSmithKline is firing about 110 employees in China for misconduct that occurred more than 18 months ago, according to a published report that a company spokeswoman has confirmed. The move comes six months after a Glaxo subsidiary in China was found guilty of bribing doctors, hospitals and other non-government personnel and fined more than $490mn by Chinese authorities.
The firings are taking place in response to instances in which the drug maker found “clear evidence of wrongdoing,” Herve Gisserot, senior vice president and general manager for pharmaceuticals and vaccines for Glaxo in China and Hong Kong, wrote in a memo to employees, according to Bloomberg News.
“Based on the findings, we have taken disciplinary action against employees whose conduct went against GSK’s values and code of conduct. We have zero tolerance for this kind of behavior,” a Glaxo spokeswoman wrote Pharmalot. She added that the drug maker has increased its monitoring of expense claims and compliance efforts, and also hired lawyers and consultants to review operations.
“As we’ve said before, GSK remains fully committed to China and has implemented fundamental policy reforms to ensure the company operates to the highest standards,” she continued. “We continue to look to our business in China and expect to make further investments in the country as we evolve our business model there to best meet the needs of patients and customers in the country.”
The firings come as Glaxo seeks to rebound from the scandal, which set back efforts to restore its image and revamp business practices in the wake of a $3bn settlement with US authorities three years ago. The drug maker had been accused of failing to disclose clinical trial data for certain medicines and improperly marketing drugs, among other things.
The episode in China contributed to a 46% pay cut that Glaxo chief executive Andrew Witty took for 2014, according to the annual report. However, the board also praised his efforts to remake operations in China and a wide-ranging, $1.6bn cost-cutting campaign, which was triggered, in part, by the struggling respiratory drug business in the US.