Entries in GlaxoSmithKline (2)


Feds: GlaxoSmithKline to Pay $3B for Illegally Marketing Drugs

GLAXOSMITHKLINE/AFP/Getty Images(WASHINGTON) -- Heathcare giant GlaxoSmithKline has agreed to an unprecedented $3 billion settlement with the U.S. government over allegations that the company advertised drugs for uses not approved by the Food and Drug Administration and then used lavish gifts to convince doctors to prescribe the drugs.

In one instance, a drug was widely promoted to help treat depression even though the FDA had never tested it for such a use, according to the Department of Justice.  The multi-billion dollar settlement is the largest in U.S. history for alleged healthcare fraud, government officials said.

GlaxoSmithKline, or GSK, is a major manufacturer of prescription medication, vaccines and consumer healthcare products.  On its website, the company boasts, "every minute more than 1,100 prescriptions are written for GSK products."

In a 2011 Corporate Responsbility Report, GSK addressed the government's allegations broadly, saying, "Some people are concerned that marketing by pharmaceutical companies may exert undue influence on doctors, that sales representatives may not always give doctors full information about the products they are promoting, or that there may be promotion of medicines for unapproved uses."

GSK goes on in that document to say that the company has "fundamentally changed our procedures for compliance, marketing and selling in the USA to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently."

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Copyright 2012 ABC News Radio


GlaxoSmithKline to Pay $750 Million in Federal Health Care Fraud Settlement

Photo Courtesy - Getty Images(BOSTON) -- GlaxoSmithKline has agreed to plead guilty and pay a massive fine totaling $750 million to the federal government and the states to resolve allegations that the company caused false claims to be submitted to government health care programs for certain quantities of adulterated Kytril, Bactroban, Paxil CR and Avandamet. 

The federal government argues that "GSK sold certain batches, lots or portions of lots of drugs," that possessed a strength, purity or quality "which fell materially below" that which was specified in the drugs' FDA applications.  Consequently, the government says GSK "knowingly caused false and/or fraudulent claims to be submitted" to Medicaid and other federal health care programs.

"Adulterated drugs undermine the integrity of the FDA's approval process, can introduce substandard or ineffective drugs on to the market and, in the worst cases, can potentially put patients' health at risk," said Tony West, Civil Division Assistant Attorney General for the Department of Justice.

The Justice Department says this settlement is part of the government's ongoing effort to battle health care fraud under the False Claims Act.  The law has helped the government to recover $4.2 billion in cases related to federal health care fraud since January 2009.

Copyright 2010 ABC News Radio

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