Eli Lilly in China bribery claims

ELI Lilly yesterday became the latest western pharmaceutical group to be drawn into escalating allegations of corruption in China, with reports in the local media that it paid 30-million yuan ($4.8m) in kickbacks to doctors to prescribe its products for diabetics.

The 21st Century Business Herald newspaper quoted a former Chinese sales manager for the US group saying that it paid hospital doctors in Shanghai and Anhui for each new patient placed on Humulin and Byetta, as it fought for market share against its rival Novo Nordisk.

The article, quoting a manager with the pseudonym Wang Wei, also said that Eli Lilly paid doctors to give talks to other prescribers about its products. That came in addition to visits, according to the claims.

The allegations follow claims of corruption in the pharmaceuticals business and investigations opened by the authorities against Novartis, Sanofi, Lundbeck and AstraZeneca. GlaxoSmithKline has been accused of handing over illegal payments totalling up to $500m.

Eli Lilly last year agreed a payment of $29m to the US authorities to settle claims of corrupt practices abroad, including falsified expenses in China during 2006-09 that enabled sales representatives to provide gifts, meals and visits to bath houses for doctors.

Eli Lilly said it was “deeply concerned about the allegations”.

The pharmaceutical group stressed that it had not employed any senior manager in China named Wang Wei but had been made aware of similar allegations made by a former employee.

It said: “At the time of the allegations, we did an exhaustive investigation to search for any evidence of kickbacks. The investigation was very thorough.”