GlaxoSmithKline Vaccine Division Allegedly Raided by Korean Authorities

Jul 25, 2020 | GlaxoSmithKline, GSK, Investor Watch, Korea, News

GlaxoSmithKline Vaccine Division Allegedly Raised in Korean Authorities

Korean prosecutors have raided GlaxoSmithKline’s (GSK) vaccine division offices according to inside reporting. Although not public, speculation centers on an alleged price-fixing scheme involving the British giant pharma and partner firms. Korean authorities have growing concerns that major drug companies are forming cartels to control pricing.

What is known?

Back in November, the Seoul Central District Prosecutor’s Office, according to Korea Biomedical Review, raided over ten drug makers and distributors (intermediaries) in an alleged scheme to create an illegal cartel to actually “rig bids in a government tender to procure drugs” reported Kim Yun-mi. What was known back then was that one of the companies involved was Kwangdong Pharmaceutical. The investigation centered on a cervical cancer vaccine.

GSK Position

The Korea Biomedical Review approached GSK Korea for a response to this information. No response.

Kwangdong Pharmaceutical Problems

Last year, this Korean drug maker was desperately trying to diversify its business portfolio as its business was in the tank. It sought to penetrate the American market, but only lost money. Hence the company commenced a reorganization in 2019. In 2018, one of their executives, ensnared in a bribery probe, attempted suicide.

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