China pharma bribes explained
A former pharma industry sales rep in Shanghai has described how bribes were given to doctors in various ways. According to the FT ‘big-ticket bribes’ were
laundered through travel agents whereas smaller kickbacks were directly paid in cash or in kind to doctors. The former rep said he covered up the bribes using fake tax receipts or with receipts he collected from family and
friends for taxis and meals. Drug reps could boost their base
salary of 7,500 yuan a month with a
quarterly bonus of 17,000 yuan if sales targets were met, plus an
additional 5% of sales above the target.
The average industry kickback to doctors was 5-20% of the value of the drug, he said.
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