Posts tagged ‘GlaxoSmithKline’

04/02/2014

* China’s Rising Anti-Corruption Campaign: Who Is Next? | Frank Vogl

An unprecedented attack on corruption at the top of the Chinese Communist Party is now underway. Suddenly, following a spate of trials, arrests and investigations, it seems as if even the most senior leaders in the Communist Party are vulnerable.

Moreover, U.S. and other foreign firms doing business in China are on their guard as investigations of their relationships to top officials also appear to be moving into high gear. Most recently, for example, Chinese police announced that they are investigating British drugmaker GlaxoSmithKline for alleged bribery and tax violations.

Corruption is rampant in the Chinese Communist Party. The new leadership has vowed to attack this plague and in January of this year the then new Chinese Central Committee General-Secretary, Xi Jinping, who in the spring added the key title of President, declared: \”We must have the resolution to fight every corrupt phenomenon, punish every corrupt official and constantly eradicate the soil which breeds corruption, so as to earn people\’s trust with actual results.\”

Many investigations and arrests of senior officials have been seen this year, but none have been as prominent as three situations that combine to underscore just how exceptionally important this anti-graft campaign is:

First, charges of corruption were prominent in the recent trial of former top political leader Bo Xilai, the former governor and Communist Party chief of Chongqing province, who had been in line for appointment to the national Standing Committee.

Second, on September 3, Xinhua — the official Chinese news agency — reported that Jiang Jiemin, head of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council and deputy secretary of the SASAC committee of the Communist Party of China (CPC), \”has been removed from office because of suspected serious disciplinary violations.\” Jiang wielded far-reaching power over a vast array of government enterprises.

Third — and most importantly — Chinese government officials have made no effort to curb news reports that Zhou Yongkang is under investigation for corruption. Zhou had been a member of the top Communist Party Standing Committee and the country\’s chief of security and intelligence until his retirement last November. At the time he ranked at the ninth most important member of the Chinese government and the Communist Party.

It is quite possible that President Xi is encouraging the investigations and arrests of high-level officials in order to consolidate his own power and purge the Communist Party of potential rivals. Jiang Jiemen\’s career has long been closely associated with the mounting power that Zhou Yongkang enjoyed, so the news about both of them led, for example, to BBC News analyst Celia Hatton in Beijing to report that \”rumors indicate that Mr Zhou continues to act as a rival to Xi Jinping.

It is not yet clear whether Zhou will be arrested and charged with any crimes. Nor is there any announcement from officials that Jiang will be prosecuted, even though it is likely that a number of officials who have reported to him over the years, including executives at China\’s National Petroleum Corporation, could face the heat.

Many senior officials in China today may well have good reason to be nervous as they see the current investigations into Zhou and Jiang proceed. To be sure, many top officials in China have not depended on their official salaries alone given the lavish lifestyles of the families of many of them and the vast wealth of prominent Chinese businessmen with close ties to senior officials. Many officials, indeed, may now be asking: who\’s next?

via China’s Rising Anti-Corruption Campaign: Who Is Next? | Frank Vogl.

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23/07/2013

First U.S. citizen detained as China pharma probe spreads

First crackdown on party members and officials, now on commercial organisations.  China‘s anti-corruption campaign gathers pace.

Reuters: “The first U.S. citizen has been detained in China in connection with probes sparked by an unfolding corruption scandal in the drugs industry, as China widens the range of international firms and staff under the spotlight.

A Chinese national flag flutters in front of a GlaxoSmithKline (GSK) office building in Shanghai July 12, 2013. REUTERS/Aly Song

Police have also questioned two further Chinese employees from drug maker AstraZeneca in Shanghai, after a local sales representative was taken away for questioning earlier.

And China’s health ministry said 39 hospital staff would be punished for taking bribes from drug companies.

The unnamed American is the first U.S. citizen to be detained in connection with the investigations, and the second foreign national, after a British risk consultant linked with GlaxoSmithKline was held last week.

GSK has been accused by China of funneling up to 3 billion yuan ($489 million) to travel agencies to facilitate bribes to doctors and officials.

“We are aware that a U.S. citizen has been detained in Shanghai. We are in contact with the individual and are providing all appropriate consular assistance,” U.S. embassy spokesman Nolan Barkhouse said on Tuesday, when asked about the involvement of U.S. citizens in the widening probe.

He declined to say which company the individual was associated with.

The latest moves by Chinese officials underline the country’s tough stance on corruption and high prices in the pharmaceutical industry, as it unrolls wider healthcare access and faces an estimated $1 trillion healthcare bill by 2020.

“Momentum is gathering and if you are a big international firm, then you’re a good example to be held up. This is a wake-up call for the rest of the industry,” said Jeremy Gordon, director of China Business Services, a risk management company focusing on China.

AstraZeneca said that the Shanghai Public Security Bureau had asked on Tuesday to speak with two line managers linked to the sales representative questioned earlier.

“The Public Security Bureau is describing this as an individual case. We have no reason to believe it is related to other investigations,” the company said in the statement.

via First U.S. citizen detained as China pharma probe spreads | Reuters.

15/05/2013

* Rotavirus: India unveils cheap Rotavac diarrhoea vaccine

Pharmaceuticals is one of India‘s advanced industries.

BBC: “Scientists in India have unveiled a new low-cost vaccine against a deadly virus that kills about half a million children around the world each year.File photo of Indian children suffering from diarrhoea

Rotavirus causes dehydration and severe diarrhoea and spreads through contaminated hands and surfaces and is rampant in Asia and Africa.

India says clinical trials show the new vaccine, Rotavac, can save the lives of thousands of children annually.

An Indian manufacturer said the vaccine would cost 54 rupees ($1; £0.65).

International pharmaceutical companies GlaxoSmithKline and Merck produce similar vaccines but each dose costs around 1,000 rupees.

“This is an important scientific breakthrough against rotavirus infections, the most severe and lethal cause of childhood diarrhoea, responsible for approximately 100,000 deaths of small children in India each year,” India’s Department of Biotechnology official K Vijay Raghavan said.

“The clinical results indicate that the vaccine, if licensed, could save the lives of thousands of children each year in India,” he added.

Rotavac will be made by Hyderabad-based Bharat Biotech. The company said it could mass-produce tens of millions of doses after clearance is given, expected in eight or nine months.”

via BBC News – Rotavirus: India unveils cheap Rotavac diarrhoea vaccine.

See also – https://chindia-alert.org/economic-factors/indias-services/

18/02/2013

* Outsourcers turn to China to plug India’s skills gap

The Times: “India is running out of the skilled engineers needed to man its giant software industry, forcing companies to hire staff overseas, especially from China, one of the industry’s pioneers has warned.

An Indian employee at a call centre provides service support to international customers

Kris Gopalakrishnan, the co-founder and executive chairman of Infosys, said that the outsourcing sector was facing a manpower shortage. India, he said, was not producing enough properly trained engineering graduates to meet expanding global demand for its services.

The country may have a population of more than 1.2 billion people, but the dearth of trained graduates is driving up salaries in its IT industry by 15 per cent a year. That, in turn, is eroding the sub-continent’s global competitiveness and forcing companies such as Infosys, Tata Consulting Services and Wipro to invest in finding foreign workers.

“A lot of the tertiary education in India is done by private colleges and there are significant quality issues there,” Mr Gopalakrishnan said.

India produces about 700,000 engineering graduates every year, but of these only about 25 per cent are sufficiently well trained to be considered for a job in IT, Mr Gopalakrishnan said.

Infosys — whose customers include BP, GlaxoSmithKline and Tesco — was planning to treble its workforce in China from 3,500 to more than 10,000 to help cope with constraints at home, where most of its 155,000 staff work.

“Apart from China, there are not many countries in the world where we can recruit large enough numbers,” Mr Gopalakrishnan added. Infosys, which generated revenues of $7 billion last year, already operates large software development and outsourcing operations in Shanghai, Dalian, Beijing, Hangzhou and Jiaxing. The wages in China are higher than in India but are rising at a more modest pace of about 10 per cent annually.

Infosys has also been expanding its overseas presence in other low-cost countries, such as the Philippines, and has explored opportunities in Egypt.

In expanding fields such as data analytics, there are only about 50,000 engineers in India with the right programming skills. Demand is at least five times that number, according to Heidrick & Struggles, a recruitment company.

India’s software and outsourcing industry employs about three million people directly, an increase of 188,000 from a year ago. It generated $75.8 billion in exports in 2012-13, making it India’s largest single export industry, and is continuing to grow at more than 10 per cent a year even as India’s overall rate of economic growth has nearly halved over the past three years, to just over 5 per cent.

Mr Gopalakrishnan said that as well as hiring overseas, Infosys was trying to improve the quality of education in India by funding teacher training programmes at 350 engineering colleges. The group has also built a private campus in the southern city of Mysore capable of training 14,000 students.

“We will have to continue to invest heavily in education and training,” he said.”

via Outsourcers turn to China to plug India’s skills gap | The Times.

See also: https://chindia-alert.org/economic-factors/information-technology/

26/11/2012

* GSK Invests in India, Nigeria

WSJ: “GlaxoSmithKline  said Monday it plans to increase its stakes in its Indian and Nigerian units at a cost of more than $1 billion as the pharmaceuticals company targets consumers in fast-growing markets.

GSK, the U.K.’s largest drug maker by sales, plans to buy an additional 31.8% stake in GSK Consumer Healthcare Ltd. for approximately $940 million, taking its ownership in the Indian unit to a maximum 75% allowed under Indian ownership rules. The deal is in part a bet on Horlicks, a malted milk bedtime drink regarded as old-fashioned in the U.K. which is seeing rising sales in the former British colony.

Like many drug companies, GlaxoSmithKline is expanding its consumer health-care business as many of its best-selling prescription drugs lose protection from cheaper copies while also expanding into faster growing markets as its main U.S. and western European businesses face slowing sales. European sales fell 9% in the third quarter of 2012, largely due to price pressure from European governments.

At the same time, some consumer-goods companies are expanding into health-care products, a market buoyed by an aging population which continues to spend on vitamins and minerals to improve well-being. Reckitt Benckiser Group  last week signed a $1.4 billion deal to acquire U.S. vitamin maker Schiff Nutrition International Inc.,  outbidding German pharmaceutical company Bayer .”

via GSK Invests in India, Nigeria – WSJ.com.

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