GSK Probe may Lead to Drug Price Reform

　　A travel agency in east China's Shanghai has been closed, so that a probe can be carried out over its role in suspected bribery² and tax-related violations³ of GlaxoSmithKline or GSK.

 

　　Meanwhile, it is being reported that the China branch of Belgian drug maker⁴ UCB has been visited by authorities as China widens its probe into the drug industry.

 

　　Industry insiders say that aside from cracking down on commercial bribery, the investigation⁵ may work to curb⁶ sky high drug prices in the country.

 

　　CRI's Zhang Shuangfeng has more.

 

　　Li Ling is a professor from the National School of Development of Peking University. She says the current investigation into GSK only reveals the tip of the iceberg⁷ in relation to drug pricing.

 

　　"Over the years, hospitals have depended heavily on drug sales for revenue. From drug production to sales, there is a comprehensive industrial chain. The latest round of medical reform only touched on the drug sales in hospitals, but in the drug production and distribution process, there is huge room for overpricing. But the authority hasn't probed into this sector⁸ until now. So, I think the investigation will be very helpful to bring in further reforms in drug pricing."

 

　　GSK China has been accused of transferring up to 3 billion yuan or 489 million US dollars to 700 travel agencies and consultancies since 2007 to facilitate bribes⁹.

 

　　Wen Jianyong, the owner of the Shanghai-based travel agency, says the falsely claimed money is used to bribe¹ GSK's interested parties.

 

　　"Liang Hong would tell me that he is going to visit an expert or official. But according to their company rules, the employee can't spend over 200 yuan on a gift. That will not be enough. Then he would ask me to prepare more cash for him. Sometimes it could be 40 to 50,000 yuan and sometimes it could be 500,000."

 

　　Liang Hong was the operations manager for GSK China. He adds the money spent on bribery will be shifted on to product costs, which eventually pushes up the drug prices.

 

　　"Each procedure comes with costs, and all of them will be added to the drug price. This sort of operational cost will take up around 20 to 30 percent of the product price."

 

　　Liang says the company's antidote¹⁰ for hepatitis B originally costs less than 84 yuan, but with operational costs taken into account, the ex-factory price of the drug can reach over 140 yuan.

 

　　Earlier this month, the National Development and Reform Commission started a separate investigation against 60 pharmaceutical¹¹ companies for their drug pricing.

 

　　Meanwhile, Cheng Wenhao, a professor with Tsinghua University, is calling for further investigation over the parties and personnel who receive bribes.

 

　　"In my opinion, a balanced commercial bribery investigation should look into both parties; the provider and the receiver. Those who receive bribes should also face harsh penalties. Only by doing so can the authorities crack down on the supply and demand of commercial bribery."

 

　　The investigation is currently ongoing¹² and a British executive of GSK China has been barred from leaving the country.

 

　　For CRI, I'm Zhang Shuangfeng.

1 bribe   

n.贿赂；v.向…行贿，买通

参考例句：

• He tried to bribe the policeman not to arrest him.他企图贿赂警察不逮捕他。
• He resolutely refused their bribe.他坚决不接受他们的贿赂。

2 bribery   

n.贿络行为，行贿，受贿

参考例句：

• FBI found out that the senator committed bribery.美国联邦调查局查明这个参议员有受贿行为。
• He was charged with bribery.他被指控受贿。

3 violations   

违反( violation的名词复数 )； 冒犯； 违反（行为、事例）； 强奸

参考例句：

• This is one of the commonest traffic violations. 这是常见的违反交通规则之例。
• These violations of the code must cease forthwith. 这些违犯法规的行为必须立即停止。

4 maker   

n.制造者，制造商

参考例句：

• He is a trouble maker，You must be distant with him.他是个捣蛋鬼，你不要跟他在一起。
• A cabinet maker must be a master craftsman.家具木工必须是技艺高超的手艺人。

5 investigation   

n.调查，调查研究

参考例句：

• In an investigation,a new fact became known, which told against him.在调查中新发现了一件对他不利的事实。
• He drew the conclusion by building on his own investigation.他根据自己的调查研究作出结论。

6 curb   

n.场外证券市场，场外交易；vt.制止，抑制

参考例句：

• I could not curb my anger.我按捺不住我的愤怒。
• You must curb your daughter when you are in church.你在教堂时必须管住你的女儿。

7 iceberg   

n.冰山，流冰，冷冰冰的人

参考例句：

• The ship hit an iceberg and went under.船撞上一座冰山而沉没了。
• The glacier calved a large iceberg.冰河崩解而形成一个大冰山。

8 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

9 bribes   

n.贿赂( bribe的名词复数 )；向（某人）行贿，贿赂v.贿赂( bribe的第三人称单数 )；向（某人）行贿，贿赂

参考例句：

• It was alleged that he had taken bribes while in office. 他被指称在任时收受贿赂。
• corrupt officials accepting bribes 接受贿赂的贪官污吏

10 antidote   

n.解毒药，解毒剂

参考例句：

• There is no known antidote for this poison.这种毒药没有解药。
• Chinese physicians used it as an antidote for snake poison.中医师用它来解蛇毒。

11 pharmaceutical   

adj.药学的，药物的；药用的，药剂师的

参考例句：

• She has donated money to establish a pharmaceutical laboratory.她捐款成立了一个药剂实验室。
• We are engaged in a legal tussle with a large pharmaceutical company.我们正同一家大制药公司闹法律纠纷。

12 ongoing   

adj.进行中的，前进的

参考例句：

• The problem is ongoing.这个问题尚未解决。
• The issues raised in the report relate directly to Age Concern's ongoing work in this area.报告中提出的问题与“关心老人”组织在这方面正在做的工作有直接的关系。