Connect to share and comment

GlaxoSmithKline reports plunge in China drug sales amid bribery probe; worldwide sales flat

PlacardEnlarge
(Globalpost/GlobalPost)

LONDON - GlaxoSmithKline says its sales of drugs and vaccines in China tumbled in the third quarter as it was hit by bribery investigations there.

Worldwide sales, it says, were flat as growth in the U.S. and Europe helped offset China's 61 per cent drop. Total revenue rose 1 per cent to 6.51 billion pounds ($10.5 billion).

The company was hit by allegations by the Chinese government that four of its employees paid bribes to doctors and hospitals to encourage them to prescribe medications.

Chief Executive Andrew Witty said Wednesday that the decline in China was disappointing but it was too early to judge the long-term impact of the probe.

The company said it expected earnings per share to grow between 3 per cent and 4 per cent this year.

http://www.globalpost.com/dispatch/news/the-canadian-press/131023/glaxosmithkline-reports-plunge-china-drug-sales-amid-bribery