Sinopharm Group Former Vice President Detained

HONG KONG--A former Sinopharm Group Co. (1099.HK) senior official has been detained in a corruption investigation, the company said.

Former vice president Shi Jinming was detained on Jan. 10 by Shanghai authorities, the pharmaceutical products distributor said in a statement on Sunday.

Mr. Shi resigned in late December for personal reasons and left the company Jan. 7, it added without further details.

In addition, a former general manager of wholly owned unit Sinopharm Holding Distribution Co. Ltd. Xu Yizhong is also involved in the investigation, the Hong Kong-listed company controlled by state-run China National Pharmaceutical Group Corp. said.

Both Mr. Shi and Mr. Xu couldn't immediately be reached for comment.

The investigation has no material impact on operations and a committee to examine and review internal controls has been set up, Sinopharm said.

There has been a crackdown on pricing to graft in the industry. In July U.K. drug company GlaxoSmithKline PLC (GSK) was accused of bribing doctors, hospitals and government officials to buy more drugs at higher prices. Glaxo said some managers may have broken the law and is cooperating with the probe.

Write to Joanne Chiu at [e-mail]

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