Lingering Effect of GSK’s Bribery.docVIP

Lingering Effect of GSK’s Bribery 　　Recently， large foreign pharmaceutical companies successively submitted their performance reports in the third quarter of 2013 in China. Their situations varied greatly as profits and losses could be seen all together. This also narrowed the gap among the Top 10. 　　Influenced by multiple bribery scandals， the circle of pharmaceutical companies held fewer academic events and external conferences in third quarter of 2013. The rectifica- tion of incorrect business behaviors held by companies like GlaxoSmithKline （GSK） has encumbered these foreign drug companies’ sales. 　　According to the latest data from IMS， GSK could keep the 14.4% annual compound growth rate from August 2012 to July 2013. However， in August， when the bribery scandal was revealed， the month-on-month sales grwoth rate dropped 21%. 　　Sanofi and Bayer which were put under investigation as well also had their sales increase drop over 2.5% in August compared with a month before. 　　The event of GSK’s bribery is to be ended within one or two months. The result is going to be an indicator for the industry. “Though GSK is very likely to be severely fined by the Chinese government， the company is next to impossible to quit the Chinese market”. 　　 The Shrinking GSK Business 　　In the latest seat sequence of foreign drug companies in terms of sales amount in China， GSK took the eighth place and is trying to catch up with Mercer， the 7th seat， and widening its gap from Novo Nordisk and Lilly. However， the British company finds it more and more difficult to finish the task because the bribery scandal has raised the alert for the regulatory departments and made physicians less willing to write the products of GSK on their prescriptions. 　　The data from IMS shows that “GSK’s sales in China reached US$540 million in the first eight months of 2013， US$68 million higher than the same period of 2012.” But in August， GSK was the only company among the Top 10 foreign pharmaceutic