GSK appoints new China head

China Featured - July 26th, 2013

GlaxoSmithKline has appointed a new head for its troubled Chinese division embroiled in a broadening probe into bribery allegations.

The drug giant named Herve Gisserot as the new general manager for GSK China amid scrutiny at one of its fast-growing markets.

Mark Reilly, who left Shanghai last month, will stay with the company to cooperate with Chinese authorities on the investigations, GSK said.

GSK has been accused of funneling millions through travel agencies to facilitate bribes to doctors and officials.

Several Chinese executives were detained in the last few weeks over allegations they were operating outside the company’s systems and processes, GSK chief executive Sir Andrew Witty said.

Earlier this week, the drug maker admitted possible breaches of Chinese law by some of its staff.

GSK said it expected “some impact” on its financial performance from the bribery investigation in China, although it said it was “too early to quantify” the extent of the scandal.