Hengrui Medical declares bribery case: it is the employee’s personal behavior of the subsidiary has resigned

Hengrui Medical declares “bribery case”: it is the employee’s personal behavior of the subsidiary has resigned
On the evening of May 12, Jiangsu Hengrui Medicine Co., Ltd. issued an announcement regarding the recent media report on the verdict of bribery in a hospital in Zhejiang.Relevant personnel paid bribes and questioned the rationality of the company’s sales expenses and other cash expenses in 2019, and responded.The company has verified the content of the report, and now the main situation is explained as follows: Some witnesses in the bribery case of a doctor in a hospital in Zhejiang are employees of our company’s subsidiaries.After verification, the incident was a personal behavior of the employees of the subsidiary, which seriously violated the company’s management system, but it also reflected a loophole in company management.At present, the relevant personnel have resigned, and the responsible leaders of the subsidiaries have been transferred from their posts.The company and its directors, supervisors, and executives have no violations of laws and regulations, and there is currently no relevant lawsuit.In the future, the company will learn lessons and strengthen compliance management of its subsidiaries to prevent such incidents from happening.In 2019, the company’s sales expense ratio was 36.61%.According to the data of Flush Flush, the company’s sales expense ratio ranks 85th among the 230 consecutive companies (including API companies) in the pharmaceutical manufacturing industry of Shanghai and Shenzhen stock markets, which is at the industry’s middle level.The sales expenses disclosed by the company’s 2019 annual report mainly include the market promotion of the company’s products, the construction of innovative drug professional platforms, travel expenses, and distribution incentive fees.Editor Chen Li