GSK share price declines amid fresh corruption claims

on Apr 14, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Monday, April 14: GlaxoSmithKline (LON:GSK) has come under fresh scrutiny, facing a criminal investigation in Poland for allegedly bribing doctors to promote its medications.

As investigations into claims of multi-million pound bribery by GSK in China (GSK share price: Drugmaker investigates alleged bribery in Iraq) continue, prosecutors in Poland have now charged 11 doctors and one of GSK’s regional managers with corruption, the BBC’s Panorama programme revealed yesterday.

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A sales representative in Poland, Jarek Wisniewiski, who worked at the UK’s largest drugmaker for eight years until 2012, claims doctors in the country were paid to promote GSK’s lung drug Seretide.
Wisniewiski claims that the drugmaker organised cash payments which were billed as funding for an education programme. He told Panorama: “I pay for education and in the same meeting I said that I need more prescriptions for Seretide. So … they knew exactly for what I pay.”

Another former GSK drug representative, who did not want to be identified, alleged that the pharma giant paid medical personnel for lectures which never actually took place and this would result in a greater number of prescriptions.
GSK responded that it organised training sessions in Poland as part of a programme “to assist in improving diagnostic standards and medical training” from 2010 to 2012. The group said in a statement today that it had investigated allegations about the conduct of the programme and “found evidence of inappropriate communication in contravention of GSK policy by a single employee [who] was reprimanded and disciplined as a result.”

Poland’s Central Anti-corruption Office (CBA) is continuing its probe into the allegations. If they are proved, Glaxo may have violated the UK Bribery Act and the US Foreign Corrupt Practices Act. In both countries it is illegal for companies operating there to bribe government employees abroad.

**News weigh on GSK share price**
GSK’s share price has been trading in negative territory today, and stood 1.10 percent lower at 1,535.00p as of 12:15 BST.
According to AnalystRatingsNetwork data, four research analysts have a ‘sell’ rating on the FTSE 100-listed pharma giant, 12 have it as a ‘hold’ and nine rate it as a ‘buy’. The stock’s consensus rating is ‘hold’ with an average price target of 1,709.93p.
**As of 12:50 BST, buy GSK shares at 1,537.50p.**
**As of 12:50 BST, sell GSK shares at 1,536.50p.**

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