e-drug
[Top] [All Lists]

[e-drug] Glaxo to pay $3 bn for largest health care fraud in US

E-DRUG: Glaxo to pay $3 bn for largest health care fraud in US
--------------------------------------------------------------

http://www.washingtonpost.com/national/health-science/glaxosmithkline-to-pay-3b-in-largest-healthcare-fraud-settlement-in-us-history/2012/07/02/gJQArBKIJW_story.html
[Please fix URL if broken; article copied below as fair use]
 
Glaxo to pay $3 bn for largest health fraud in US
By Associated Press, Tuesday, July 3, 5:38 AM
TRENTON, N.J. 

British drug maker GlaxoSmithKline will pay $3 billion in fines. The largest 
health care fraud settlement in U.S. history for criminal and civil violations 
involving 10 drugs that are taken by millions of people.
 
The Justice Department said Monday that GlaxoSmithKline PLC will plead guilty 
to promoting popular antidepressants Paxil and Wellbutrin for unapproved uses. 
The company also will plead guilty to failing to report to the government for 
seven years some safety problems with diabetes drug Avandia, which was 
restricted in the U.S. and banned in Europe after it was found in 2007 to 
sharply increase the risks of heart attacks and congestive heart failure.

 In addition to the fine, Glaxo agreed to resolve civil liability for promoting 
Paxil, Wellbutrin, asthma drug Advair and two lesser-known drugs for unapproved 
uses. The company also resolved accusations that it overcharged the 
government-funded Medicaid program for some drugs, and that it paid kickbacks 
to doctors to prescribe several drugs including Flovent for asthma and Valtrex 
for genital herpes.

 Sir Andrew Witty, Glaxo�s CEO, expressed regret Monday and said the company 
has learned from the mistakes that were made.�

 This is the latest in a string of settlements related to drug companies 
putting profits ahead of patients. In recent years, the government has cracked 
down on drug makers� tactics, which include marketing medicines for unapproved 
uses. While doctors are allowed to prescribe medicines for any use, drug makers 
cannot promote them in any way that is not approved by the U.S. Food and Drug 
Administration. 
�Let me be clear, we will not tolerate health care fraud,� Deputy Attorney 
General James M. Cole said Monday during a news conference at the Justice 
Department in Washington.
 
Glaxo is scheduled to plead guilty to the criminal charges and have the 
settlement approved at a hearing Thursday in U.S. District Court in Boston. In 
addition to the $3 billion penalty - which includes a $1 billion criminal fine 
and forfeiture and $2 billion to resolve civil claims - Glaxo agreed to be 
monitored by the government for five years to ensure that it complies with 
marketing and other rules.
 
The case against Glaxo was originally brought in January 2003 by two 
whistleblowers, former Glaxo sales representatives Greg Thorpe and Blair 
Hamrick. In January 2011, the federal government joined in the case.

 Prosecutors said Glaxo illegally promoted Paxil for treating depression in 
children from 1998 to 2003, even though it wasn�t approved for anyone under age 
18. The company also promoted Wellbutrin from 1999 through 2003 for weight 
loss, sexual dysfunction, substance addictions and attention deficit 
hyperactivity disorder, although it was only approved for treatment of major 
depression.

 Starting in 2001, Thorpe reported to his district manager, then to Glaxo�s 
human resources department and finally to Glaxo�s chief of global compliance 
about a number of improper marketing practices. The compliance chief began an 
internal investigation, which confirmed Thorpe�s allegations through various 
ways including marketing materials and interviews with Hamrick and other sales 
representatives, according to lawyers for the two men.

-- 
Dr Gopal Dabade,
57, Tejaswinagar,
Dharwad 580 002
Tel 0836-2461722
Cell (0)9448862270
www.jagruti.org
http://aidanindia.wordpress.com/
www.daf-k.cjb.net
<Prev in Thread] Current Thread [Next in Thread>