Monday, July 2, 2012

GlaxoSmithKline Plc has Agreed to Criminal Charges and Will pay $3 Billion in Fines

So Do you Trust BigPharma? We don’t
GSK Building-flckr Several News sources have indicated a Health Care Fraud Settlement. The settlement includes $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the drug company's Paxil, Wellbutrin and Avandia products. Paxil and Wellbutrin are both antidepressants. As part of the settlement, GlaxoSmithKline (GSK) agreed to strict oversight of its sales force by the U.S. government to prevent the use of kickbacks or other prohibited practices. GSK was found to be promoting their drugs for off label purposes, or essentially selling their drugs to patients that their product was not approved for. GSK also sold to underage children. They target marketed to children under 18 when their product was approved for adults only. This is actually done by pharmaceutical sale representatives promoting to family physicians. Also these sale representatives were providing kickbacks to these same physicians and hospitals. ABC News-The Justice Department says GlaxoSmithKline will pay $3 billion and plead guilty to promoting two popular drugs for unapproved uses and to failing to report important safety data about a diabetes drug to the Food and Drug Administration. Government officials say it's the largest health care fraud settlement in U.S. history. Prosecutors say GSK encouraged use of Paxil for children. The company also promoted Wellbutrin for uses besides major depressive disorder, its only approved use. They say that between 2001 and 2007 GSK failed to report on two studies of the cardiovascular safety of Avandia, a diabetes drug. Abbot Labs was fined $1 billion a few month ago also for off label marketing by their Sales Representatives and Marketing department. .

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