Novartis accused of bribery in China; plans strategic review

|About: Novartis AG (NVS)|By:, SA News Editor

Novartis (NVS) becomes the latest multinational pharmaceutical company to be caught up in bribery allegations in China, with an unnamed former employee reportedly saying that her manager told her to pay bribes of 50,000 yuan ($8,200) to doctors to guarantee 650,000 yuan in sales of cancer treatments for June and July.

The allegations follow accusations in Japan that data for Novartis' heart medicine Diovan was tampered with to create false results.

They also come amid bribery and price-fixing probes into foreign drug companies in China.

Meanwhile, Novartis intends to begin a strategic review of its units next week and would consider making an acquisition of $10B in order to strengthen its business, new Chairman Joerg Reinhardt tells Bloomberg.