GSK to stop paying doctors to promote drugs: NY Times

Written By Unknown on Selasa, 17 Desember 2013 | 15.45

Dec 17, 2013, 09.15 AM IST

The company's decision comes at a time when GSK faces allegations of illegal payments to Chinese doctors and officials.

Tags  GlaxoSmithKline, Andrew Witty, doctors , sales representatives

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GSK to stop paying doctors to promote drugs: NY Times

The company's decision comes at a time when GSK faces allegations of illegal payments to Chinese doctors and officials.

Like this story, share it with millions of investors on M3

GSK to stop paying doctors to promote drugs: NY Times

The company's decision comes at a time when GSK faces allegations of illegal payments to Chinese doctors and officials.

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GlaxoSmithKline  will stop paying doctors to promote its products, Chief Executive Andrew Witty said in an interview with the New York Times, in a move that could be a first for a major drug company.

GSK will also stop tying compensation of sales representatives to the number of prescriptions doctors write, the NY Times said.

Also Read: Subscribe to GSK Pharma open offer: Ajay Srivastava

The company's decision comes at a time when GSK faces allegations of illegal payments to Chinese doctors and officials.

Chinese police have accused GSK of funneling up to 3 billion yuan to travel agencies to facilitate bribes to boost its drug sales. The accusations are the most serious against a multinational in China in years.

However, in the interview Witty said that the proposed changes were unrelated to the investigation in China, and are part of a yearslong effort "to try and make sure we stay in step with how the world is changing."

Witty declined to comment to the newspaper on the Chinese investigation because he said it was still underway.

GlaxoSmithKline could not immediately be reached for comment by Reuters outside of business hours.


GlaxoSmithKline stock price

On December 17, 2013, at 14:15 hrs GlaxoSmithKline Pharmaceuticals was quoting at Rs 2943.95, up Rs 16.55, or 0.57 percent. The 52-week high of the share was Rs 2960.00 and the 52-week low was Rs 2005.00.


The company's trailing 12-month (TTM) EPS was at Rs 61.81 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 47.63. The latest book value of the company is Rs 237.30 per share. At current value, the price-to-book value of the company is 12.41.


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