Rebirth of England.

After all, facing these investigations, once verified, GlaxoSmithKline will not only face huge fines from China, the United States, and the United Kingdom, but will also lose a considerable part of the market...

You should know that GlaxoSmithKline (Huaxia) is one of the largest multinational pharmaceutical companies in China. Before 2000, Glaxo Wellcome and SmithKline Beecham merged into GlaxoSmithKline and established their headquarters in Brentford. They entered the Chinese market in the s.

As of now, GlaxoSmithKline's business layout in China has reached more than 250 cities and regions, with 5 regional centers, an investment company and an institute of infectious diseases and public health in Yanjing, as well as joint ventures, R&D centers and a national commercial operation center in Shanghai, Tianjin and Wuhan, with a total of more than 4000 employees.

Therefore, this bribery case of GlaxoSmithKline in China will definitely impact its market in China, especially its two core businesses in China - prescription drugs and vaccines.

In Barron's previous life, affected by this incident, GlaxoSmithKline's revenue from these two businesses in China plummeted by 61%!

"In fact, GlaxoSmithKline's current sales in China only account for about 3% of its global sales. Therefore, from a global perspective, even if GlaxoSmithKline completely abandons the Chinese market, the impact on its revenue will not be that great..."

Daisy said to Barron:

"The reason why their stock prices have fallen so much this time, with a drop of more than 30% at one point, is mainly because there are rumors that China will issue a huge fine to GlaxoSmithKline. In addition, the intervention of the U.S. Department of Justice in the investigation is a more direct threat to GlaxoSmithKline, which is also listed on the U.S. stock market. After all, the U.S. market is an important part of it..."

At this time, Barron had already returned to London from China.

Indeed, the bribery case of GlaxoSmithKline was quite a big deal in China at that time, and Baron had heard about it in his previous life. Especially in this case, China issued GlaxoSmithKline the highest fine in their history - a fine of 30 billion Chinese yuan, which was indeed impressive.

"GSK cannot give up the Chinese market. After all, although their current sales in China do not account for a high proportion of global sales, the Chinese market is growing rapidly. GlaxoSmithKline has already established a presence in China and has made a number of acquisitions..."

In the pharmaceutical business, GlaxoSmithKline has always focused on four core therapeutic areas: infectious diseases, HIV, oncology and immunology. In China, in recent years alone, GlaxoSmithKline has repeatedly made large-scale fixed asset investment projects.

This included GlaxoSmithKline's acquisition of Jinling Meirui Pharmaceutical Co., Ltd. for US$2010 million in cash in December 12. Meirui Pharmaceutical Co., Ltd. is the operating entity of Pagoda Pharmaceutical Group in China, and its product lines include urology and allergy product portfolios.

In September 2011, GlaxoSmithKline spent US$9 million to acquire the remaining 3900% stake in Shenzhen GlaxoSmithKline Neptune Biological Products Co., Ltd., a joint venture between the two parties, from Shenzhen Neptune Interlong Biotech Co., Ltd., which mainly engages in vaccine research, development, and production operations.

Therefore, development in China is GlaxoSmithKline's established strategy and it will not be easily abandoned.

As for the sharp drop in GlaxoSmithKline's share price, it also reflects the panic in the market. After all, if the case can be settled with the Chinese side by paying a fine, it will not be a serious matter for GlaxoSmithKline - but relatively speaking, the US Department of Justice is more difficult to deal with.

GlaxoSmithKline has had similar bribery cases in other countries before. For example, it has been fined heavily for suspected violations in the United States, Italy, New Zealand and other countries.

If the US Department of Justice continues to hold GlaxoSmithKline accountable, it would have disastrous consequences for GlaxoSmithKline, which has a higher share of the European and American markets.

"Multinational companies do this in many countries and regions. It's just a matter of whether they will be caught and punished by regulators. We have made a good profit from shorting GlaxoSmithKline. Next, we need to determine to what extent we should do it."

Daisy is not wrong. For example, in China, the GlaxoSmithKline incident is not an isolated case of foreign companies suspected of bribery in China. Previously, many well-known multinational companies including Pfizer, Morgan Stanley, IBM, Lucent, Walmart, Depp, Avery Dennison and others have been suspected of commercial bribery in China.

As for her problem...

Barron would then need to decide whether this time he would short sell to make a profit and then close his position, or go a step further and take advantage of GlaxoSmithKline's current troubles to hold some shares of the pharmaceutical giant.

In fact, the pharmaceutical and healthcare industry is also an investment direction that Barron is interested in. For example, he has previously invested heavily in Pfizer Pharmaceuticals and became the company's largest shareholder.

GlaxoSmithKline is also a pharmaceutical giant of similar size to Pfizer - well, when I say similar size, I mean that they are ranked similarly in the global pharmaceutical company rankings.

Currently, Pfizer ranks second among global pharmaceutical companies in terms of market value, with a market value of approximately US$1900 billion, second only to Johnson & Johnson.

Previously, GlaxoSmithKline ranked sixth with a market value of less than $1200 billion.

Judging from the market value alone, the gap between the two is still quite large.

However, based on Baron's experience in his previous life, GlaxoSmithKline's future development will not be as good as Pfizer's.

In the original time and space, until 2015, GlaxoSmithKline always appeared at the forefront of the global pharmaceutical company rankings, but after that, GlaxoSmithKline was no longer in the top 15 of the ranking.

Well, unlike Pfizer’s market value which continued to expand, GlaxoSmithKline’s market value even fell below $1000 billion a few years later…

In his previous life, Barron had no experience in the relevant industry, nor did he care about the future development of the pharmaceutical industry. Therefore, he did not know what caused GlaxoSmithKline to fall behind.

However, he understood that the pharmaceutical industry was an industry with frequent mergers and reorganizations, and for companies like GlaxoSmithKline, drug research and development still had a great impact on the company's revenue.

So he said to Daisy:

"We can keep some of the shares after this. After all, after this incident of GlaxoSmithKline, their share price will still rebound. If we hold some shares, we can also observe the situation and make the final decision..."

Daisy had no objection to this, and she said:

"Congratulations, the EU has finally compromised."