GlaxoSmithKline hit with record 3b yuan fine for bribing Chinese doctors

China has imposed a record fine of three billion yuan (HK$3.78 billion) on British pharmaceuticals giant GlaxoSmithKline (GSK) for bribing doctors to use its drugs.

Mark Reilly, the former head of GSK in China, was sentenced to three years in jail suspended for four years. He would be expelled from China, Xinhua reported. Four other GSK executives - all Chinese - were given suspended jail sentences ranging from two to three years.

Changsha Intermediate People's Court in Hunan province ruled GSK was guilty of "bribing non-government personnel". The fine imposed on GSK was the biggest ever by a Chinese court, Xinhua said. All defendants had accepted the verdict and the sentences and would not appeal, it said.

GSK would pay the fine with cash on hand and would take a charge against its third-quarter earnings, the London-based company said in a statement yesterday. GSK also published a statement of apology to the Chinese government and Chinese people, saying it "deeply regrets the damage caused".

"This has been a deeply disappointing matter for GSK," said chief executive Andrew Witty. "We have and will continue to learn from this."

The company said it would continue to invest in China and support new drugs research in the country. It also promised to make products more accessible to rural residents "through greater expansion of production and through price flexibility".