Glaxo Pleads Guilty and Will Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data–Paxil, Wellbutrin, Avandia- Whistleblower Case

There’s all kinds of allegations in here from off label marketing, safety data, false pricing practices and it went on for 9 years.  That’s a long time but this is big fine too.  I’m sure the patient whistleblowers will get a little bit of this, although nothing has been said so far.  No more goals for territories for sales reps.  That sounds realistic with where we are today so reps are not drug pushers as the blockbuster days seems to be behind us.  In an earlier whistleblower case in Puerto Rico 60 minutes did a real in depth story on how manufacturing problems and politics created yet another fine last year.  The link at the bottom of the post has the actual announcement from the DOJ.  BD

The Glaxo Case In Puerto Rico–Bad Drugs and Bad Manufacturing-WhistleBlower Lawsuit

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Global health care giant GlaxoSmithKline LLC (GSK) agreed to plead guilty and to pay $3 billion to resolve its criminal and civil liability arising from the company’s unlawful promotion of certain prescription drugs, its failure to report certain safety data, and its civil liability for alleged false price reporting practices, the Justice Department announced today. The resolution is the largest health care fraud settlement in U.S. history and the largest payment ever by a drug company.

GSK agreed to plead guilty to a three-count criminal information, including two counts of introducing misbranded drugs, Paxil and Wellbutrin, into interstate commerce and one count of failing to report safety data about the drug Avandia to the Food and Drug Administration (FDA). Under the terms of the plea agreement, GSK will pay a total of $1 billion, including a criminal fine of $956,814,400 and forfeiture in the amount of $43,185,600. The criminal plea agreement also includes certain non-monetary compliance commitments and certifications by GSK’s U.S. president and board of directors. GSK’s guilty plea and sentence is not final until accepted by the U.S. District Court.

http://www.justice.gov/opa/pr/2012/July/12-civ-842.html