China fines Glaxo £297m for bribery, Mark Reilly sentenced

It added that there would be no appeal.

Zhang Guowei, the company’s head of human resources, was also given a three-year suspended sentence and both Liang Hong, the head of operations, and Zhao Hongyan, the company’s legal counsel, were given a two-year suspended sentence, according to Xinhua. Huang Hong, a member of the procurement department, also received a suspended sentence.

All four were also convicted under article 164 in Chinese law, and it is understood they will be dismissed by the company.

The executives and other senior managers were “directly responsible” for “actively organising, promoting and implementing the corrupt strategy”, the court said, according to Xinhua.

Andrew Witty, chief executive, described the bribery within the Chinese unit as "deepy disappointing" but said the company had "reflected deeply and learned from its mistakes".

He also stressed that the company remained "fully committed" to China despite its recent troubles.

"We will continue to expand access to innovative medicines and vaccines [in China] to improve their health and well-being. We will also continue to invest directly in the country to support the government's health care reform agenda and long-term plans for economic growth," he said.

After the verdict, GSK issued an “apology to the people of China” on its website.

It said that after a “comprehensive investigation”, GSK had been found to have “offered money or property to non-goverment personnel to obtain improper commercial gains” and had been found guilty of bribery.

GSK said it "fully accepts the facts and evidence of the investigation, and the verdict of the Chinese judicial authorities".

"Furthermore, GSK sincerely apologises to the Chinese patients, doctors and hospitals, and to the Chinese Government and the Chinese people. GSK deeply regrets the damage caused. GSK also apologises for the harm caused to individuals who were illegally investigated by GSK China Investment Co," it continued.

Glaxo said the fine would be paid by the company's Chinese business, which accounts for around 3pc of global sales.

Last month, a British private investigator, Peter Humphrey, and his American wife and business partner were jailed for two-and-a-half years and two years respectively for “illegally collecting private information”.

At the time of their arrest, the couple had just completed an internal investigation on behalf of GSK into Vivian Shi, the company’s former head of government relations in China, who was suspected by Mark Reilly of blowing the whistle on GSK’s business practices to the authorities and of recording a sex tape featuring him and his Chinese girlfriend and sending it to GSK’s board.

Shares in the company climbed 11p to £14.44 following the news.

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