NEW YORK (TheStreet) -- GlaxoSmithKline Plc's (GSK) former China chief Mark Reilly was accused by Chinese authorities today of ordering his subordinates and other employees to bribe hospital doctors, health-care organizations and other parties on "a large scale" to boost Glaxo's drug sales in China, the Wall Street Journal reports.
That helped Glaxo reap billions of yuan in additional revenue between 2009 and 2012, they said.
The unusual move could signal that China's efforts to tame its pharmaceutical market-and, more broadly, to stamp out pervasive corruption and bribery in the world's number two economy-could increasingly put foreign executives in its sights, experts say, the Journal notes.
The company said in a statement that it takes the allegations seriously.
Glaxo's shares are flat in heavy trading this afternoon.
TheStreet Ratings team rates GLAXOSMITHKLINE PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLAXOSMITHKLINE PLC (GSK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."