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Wednesday, April 24, 2024 | Back issues
Courthouse News Service Courthouse News Service

Glaxo Whacked for $3 Billion

JEFFERSON CITY, Mo. (CN) - GlaxoSmithKline will pay $3 billion to settle claims of illegal marketing and pricing of three blockbuster drugs: Avandia, Wellbutrin and Advair.

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The settlement stems from the way Glaxo pushed Avandia, for diabetes; Wellbutrin, for depression; and Advair, for asthma.

State and federal governments claimed Glaxo pushed the drugs for unapproved, off-label used, paid kickbacks to doctors and underpaid rebates owed to Medicaid and other government programs.

Of the $3 billion, $2 billion is for damages and civil penalties and $1 billion is a criminal fine for Glaxo's guilty plea to federal drug labeling and FDA reporting violations.

Missouri will receive $31 million under the settlement, its attorney general said.

Doctors may prescribe drugs for off-label uses - uses not approved by the FDA - but drug companies are not allowed to push their drugs for that.

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