GSK stocks down on bribery allegations

<p>A BBC investigation has found GSK is accused of bribing doctors in Poland.</p>

GlaxoSmithKline (GSK) is facing criminal charges in Poland over accusations it has been bribing doctors in the country.

The share price of the drug manufacturer is down this morning (April 14th) after a BBC Panorama investigation found GSK is accused of bribing 11 doctors.

A GSK regional sales manager has been charged along with the 11 doctors in connection with corruption offences. If found guilty, GSK may have violated both the UK Bribery Act and the US Foreign Corrupt Practices Act.

A former sales rep for GSK in the Polish region of Lodz, Jarek Wisniewski, claimed that doctors were paid to promote GSK's asthma drug Seretide.

He said: "There is a simple equation. We pay doctors, they give us prescriptions. We don't pay doctors, we don't see prescriptions for our drugs. We cannot go to doctors and say to them, 'I need 20 more prescriptions'.

“So we prepare an agreement for them to give a talk to patients, we pay £100, but we expect more than 100 prescriptions for this drug. It's a bribe.”

Investigation uncovers evidence of bribes

Following an investigation, the Lodz public prosecutor found evidence that GSK had made corrupt payments to doctors working in more than a dozen different health centres across the area.

Spokesman Krzysztof Kopania said: “In return for the financial gains the doctors would favour the product proposed by the pharmaceutical company and they prescribed that medicine."

One of the doctors to have been caught has admitted he took a bribe. He was given a suspended sentence, as well as a fine. He said: "They kept tempting, and I am just a man."

Investors responded negatively to the news GSK is allegedly involved with bribing doctors, with the share price of the firm falling steadily in the early stages of trading this morning.

By 08:15 BST, stocks in the company were around one per cent down on the start of the week on the London Stock Exchange.

Find up to date information on the FTSE 100 and spread betting strategies at City Index  

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.