GlaxoSmithKline's China crisis has spooked shareholders
29th July 2014
Investigation of drug firm’s sales practices underline perils to all British companies of entering high-growth export markets
China is a honeypot for drug and cosmetic firms. Chinese consumers, hurt by a succession of contamination scandals, have little trust in domestic operators. For GlaxoSmithKline it should be a major profit centre but after its own China scandal, profits are in free-fall.
On Wednesday shareholders digested the latest decline and the pharmaceutical company was the FTSE 100’s biggest faller.
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