The Chinese government is threatening to hit Glaxo with massive fines “after accusing the drug giant…of fostering an aggressive sales culture that indirectly encouraged widespread bribery on the mainland,” reports Reuters. Huang Hong, a China-based general manager for Glaxo, was quoted as saying the UK headquarters gave unrealistic annual sales growth targets of 25 percent, compared to the industry average of about 8 percent, which would put great pressure on sales staff to do whatever it takes to make those excessively high targets.
Glaxo paid $3 billion to the government in 2012 to settle whistle blower lawsuits alleging off-label marketing practices and a related criminal fine. The biggest portion of the settlement was due to a qui tam lawsuit brought by Phillips & Cohen. Glaxo’s payment was the largest healthcare fraud settlement in U.S. history.