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31 Aug

Pfizer Gets Fined by China for Bribing Local Drugstores to Promote Viagra

Published by Mark J Guillen

Pfizer Gets Fined by China for Bribing Local Drugstores to Promote Viagra

The American Pharmaceutical Company bribed local Chinese Drugstores to promote their drug Viagra in the Chinese market to increase its sales in the country.

Pfizer’s desperate measures of keeping its sales up in China have got the pharmaceutical company in hot water as the U.S based firm has been slapped with a fine of $15,570 (100,000 Yuan) by Shanghai’s Market Supervision Authorities.

The American multinational was bribing local Chinese drugstores to promote its blockbuster erectile dysfunction drug, Viagra pills. Four local chine stores were involved. The statement by the authorities said that Pfizer, in 2004, signed two agreements with China National Medicines Corporation Ltd to be the exclusive distributor and seller of its blockbuster drug, Viagra. In order to boost the drugs sales in Shanghai, the pharma company signed a deal with four local drugstores to display its drug.

The drug was given a center quality of display with specific spaces as the agreement required the local drugstores to put it up as a recommended product and they were to ensure that the product was being given centralized and fixed positions. According to Shanghai’s Pudong market supervision and management division that in order to get the specific placement for Pfizer product, which was according to the authorities violated drug management rules, the firm paid these drugstores an amount of $145,645 (930,000 yuan). These deals were made between 2011 and 2013.

The China Daily News story stated that the company is now required to fix the mess that it has created by paying an income of $463,559 (2.6 million yuan) and pay a fine of $15,655 (100,000 yuan). The pharma firm on the other hand in a response to China Daily Story said that it was partly the Chinese drugstores fault as the stores failed to implement the display agreement saying that they didn’t display the drugs as per the agreement. Furthermore the company explained that it was being very cooperative with the Chinese authorities and took immediate action to investigate the matter adding that it will accept all the penalties and fines that the Chinese authorities impose on them.

Pfizer, at this point, has a lot of competition in the United States market as one generic competitor of Viagra is in the market now. Teva Pharmaceutical and Mylan have already struck deals with the company to launch replicas of the drug in the market. Currently in the Chinese and European market, Viagra will have to deal with competitors once the drug is off its patent. The American company said that it regrets that their conduct violated the polices in China and for future they have reviews their processes and policies ensuring that further all their policies and rules comply with the business activities that can be carried on in China and throughout the world.

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People permanently need to do business with dependable and reliable folks, as good business is always built firmly on truth that is what ensures real growth.