GlaxoSmithKline PLC (GSK) has agreed to pay $20 million to settle civil charges allegations that it bribed foreign officials in China to boost medicine sales, the United States regulator revealed on Friday.

The commission accused the pharmaceutical giant's China-based subsidiary and a China-based joint venture of disguising bribes as legitimate travel, entertainment, and marketing expenses. GSK's employees and agents purportedly bribed officials to boost sales by bolstering prescriptions and purchases by hospitals.

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"The costs associated with these payments were recorded in GSK's books and records as legitimate business expenses, such as medical association sponsorship, employee expenses, conferences, speaker fees and marketing costs," the statement read.

Such accusations violated the Foreign Corrupt Practices Act, which prohibits bribery of foreign officials or company executives to secure business, the ABC reported.

GSK reportedly settled the case with the Securities and Exchange Commission (SEC) without admitting or denying the allegations, the New York Times noted.

Furthermore, GSK agreed to submit reports to the SEC for two years to monitor its compliance with the anti-corruption law. SEC noted that GSK failed not only to implement and maintain an accounting control system but also to institute an effective anti-corruption compliance program, Yahoo! News reported.

Meanwhile, GSK said it had fully cooperated with SEC and was commended for immediately taking steps to improve its operations. Measures include changing how sales representatives are paid and eliminating payments to healthcare professionals to talk to doctors about its products, according to the New York Times. GSK also claimed that the Justice Department has closed its inquiry without taking any measures against the firm.

TagsGlaxo, GlaxoSmithKline, GSK, pharmaceutical, Bribery, SEC, china