Cardinal Health (CAH), one of the largest pharmaceutical wholesalers, agreed to pay more than $8 million to resolve charges that a former Chinese subsidiary failed to detect bribes that were paid to government hospital officials and employees of state-owned companies to purchase skincare products.
Between 2010 and 2016, Cardinal China acted as the exclusive distributor in the Chinese market for a large European company and, and as part of the agreement, oversaw a marketing agreement that involved retaining about 2,400 of its employees to call on state-owned hospitals and retailers. Some of these employees directed payments to key purchasing officials while the subsidiary received a share of the profits from the sale of over-the-counter “dermocosmetic” products.
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