Drug manufacturer GlaxoSmithKline says it has named a new chief for its operations in China amid an investigation there for possible bribery of doctors.
Herve Gisserot, formerly senior vice president of London- based Glaxo’s European business, replaces Mark Reilly, who will remain part of the company’s senior executive team in London, Glaxo spokesman Simon Steel said today. Reilly will help Glaxo respond to the investigation and support Gisserot during a transition period, Steel said.
Allegations this month by the Chinese government that Glaxo bribed hospitals, doctors and health officials prompted Chief Executive Officer Andrew Witty to dispatch his head of emerging markets to China to oversee the company’s response. Some senior executives appear to have acted outside of Glaxo’s processes and controls to both defraud the company and the Chinese health-care system, Witty said on Wednesday.
Gisserot has served as president of Leem, a French trade group representing pharmaceutical companies, since January.
Separately, a travel restriction on Steve Nechelput, Glaxo’s finance chief in China, has been lifted, and he will remain in his current role, the company said.
The U.K. drugmaker has also commissioned an independent review by law firm Ropes & Gray to investigate the root cause of alleged fraudulent behavior among senior executives in China.
GlaxoSmithKline operates its U.S. headquarters in Research Triangle Park.
(The Associated Press and Bloomberg News contributed to this report)