Drug maker GlaxoSmithKline Plc has agreed to settle its most major disputes with the U.S. government over the way it developed and marketed drugs at $3 billion, Economic Times reported.
The final settlement, over both criminal and civil claims is expected to be finalized in 2012, the news reports said. It includes a Department of Justice investigation into the company’s controversial diabetes drug Avandia, which has been linked to heart risks.
The company said, “Settlement covered its sales and marketing practices for drugs including antidepressants Paxil and Wellburtin, an investigation begun by the U.S. Attorney’s office of Colorado in 2004 and later taken over by the U.S. Attorney’s Office at Massachusetts, the U.S. Justice Department’s investigation of the development and marketing of the diabetes drug Avandia.”
Besides, it also said, the tentative settlement covers both civil and criminal liabilities. “This is a significant step towards resolving difficult, long-standing matters which do not reflect the company that we are today,” CEO Andrew Witty said.
“In recent years, we have fundamentally changed our procedures for compliance, marketing and selling in the U.S. to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently,” Andrew stated.
GSK has implemented fundamental changes to the U.S. selling procedures in recent years and chief executive Andrew Witty said the cases now being settled do not reflect the company that we are today.
The cases being settled include a marketing investigation in Colorado and Massachusetts and a probe into rebates offered under the federal Medicaid programme as well as the Avandia case. The settlement of $3 billion is covered by existing legal provisions and GSK said payments would be funded through existing cash resources.
GlaxoSmithKline Plc or GSK is a global pharmaceutical, biologics, and consumer healthcare company based in London, United Kingdom. It is the world’s third largest pharmaceutical company measured by revenues.
