Is Eli Lilly & Co (NYSE:LLY) as fragile as china in China?
In separate incidents, Eli Lilly & Co (NYSE:LLY) and Sanofi, the drugmakers reported that regulators had visited their companies. Chinese authorities have been sprucing on scrutiny of the healthcare industry and these two companies were the latest on the radar. The biggest drugmaker in the U.K, GlaxoSmithKline had also not been spared.
In an emailed statement LLY said that they had been reviewed by Shenyang authorities at the start of 2013 as well. There was no clarity about the date on which this review took place. The drugmaker said that they had not received any investigation-results from the authorities.
ELI Lilly said that in China, it is one the very first companies in the drug industry to enforce very stringent compliance measures. Connie Li, the company’s Beijing-based spokesperson said that LLY has not been and is not under investigation by the Public Security Bureau in China.
Sanofi, the Paris-based company said on Friday, that one of its numerous regional offices had been visited by Shenyang Administration for Industry and Commerce authorities. Viehbacher, the company’s Chief Executive Officer said that they were not aware about the purpose of this particular inspection. He also said that their China headquarters had not been checked.
J&J was another company that the Chinese authorities had fined for monopolistic practices, even as the nation continues its crackdown on malfeasance in the health-care industry. The Chinese authorities had accused GlaxoSmithLkine of economic crimes to the tune of 3B yuan in fake meeting and travel expenses. They had also been found guilty of trading sexual favors to boost their sales.
Last month, the RDA in China said that they will be coming down heavily on companies who are forging documents, manufacturing fake medications or indulging in bribery. LLY is involved in the discovery, development, manufacture, and sale of pharmaceutical products.