China TCM Says Unit Gets Court Indictment For Alleged BriberyBloomberg News
China Traditional Chinese Medicine Co., a Hong Kong-listed drugmaker, said a subsidiary received an indictment for an alleged bribery offense from a local court in southern Guangdong province.
The subsidiary is Guangdong Yifang Pharmaceutical Co. and the company is in the process of gathering information on the allegations, China TCM said in a stock exchange statement today.
In its statement, the company didn’t specify the reasons for the indictment. Chinese officials have in recent years cracked down on corruption in the medical sector.
China TCM and its subsidiaries produce and distribute traditional Chinese medicine products ranging from ankle sprains to indigestion. Even if the Guangdong Yifang subsidiary is convicted and fined, China TCM said it doesn’t expect "any material adverse effect" on its operation and financial condition.
Calls to China TCM offices went unanswered and Guangdong Yifang said it couldn’t immediately comment.
— With assistance by Hui Li