China drug firm Gan & Lee investigating allegations it paid 800 million yuan in bribes
Sales representative claims bribes were to raise sales ahead of planned initial public offering
Chinese insulin maker Gan & Lee Pharmaceuticals said on Wednesday it was investigating allegations published in a newspaper that it spent around 800 million yuan (US$130.72 million) to bribe doctors to promote the firm’s drugs over five years.
A sales representative for the privately held company, identified by the pseudonym Wu Dejiang, told China’s 21st Century Business Herald the bribes were aimed at raising sales ahead of a planned initial public offering in Shanghai.
“From 2008 until now the amount of bribery involved is probably around 800 million yuan, and close to 300 million yuan last year alone ... Gan & Lee has been very skilful with their bribes,” the whistleblower told the newspaper.
Gan & Lee is the latest drug maker to face whistleblower accusations in the newspaper, although it is the first Chinese firm to be accused of wrongdoing.
The reports coincide with multiple Chinese investigations into the pharmaceutical sector, spanning alleged corruption to how drugs are priced.
An official at Beijing-based Gan & Lee said the company was looking into the allegations. She said the firm would then issue a statement. The official declined to comment further or give her name.
Gan & Lee is on a list of companies seeking IPO approval from the China Securities Regulatory Commission, according to the agency’s website. The newspaper said Gan & Lee began the application process in June.