GlaxoSmithKline Pays $3bn to Settle US Investigation Into Its Marketing Practices
From Guardian Web (July 2, 2012)
GlaxoSmithKline has agreed to pay a record-breaking total of $3bn to settle a US government investigation into its marketing practices for nine products.
The treatments involved included Paxil, Wellbutrin and Avandia, where Glaxo also pleaded guilty to misdemeanor violations. The company said the costs of the settlement were covered by existing provisions, and added that it had made fundamental changes to its procedures in the US over the last few years.
Glaxo said the after tax cost would be around $150m lower than the provision. Chief executive Andrew Witty said:
Whilst these [matters] originate in a different era for the company, they cannot and will not be ignored. On behalf of GlaxoSmithKline I want to express our regret and reiterate that we have learnt from the mistakes that were made.
The news came shortly after Glaxo announced more positive news, in the shape of upbeat trial results for an experimental once-daily treatment for chronic lung disease.
Glaxo shares are currently 22.5p higher at 1469.5p.
Posted: July 2012