October 27, 2010 – Federal prosecutors announced yesterday that pharmaceutical giant GlaxoSmithKline will pay $750 million to settle allegations that it knowingly manufactured and sold adulterated drugs.
Specifically, the London-based company will pay $150 million in criminal fines and $600 million in civil penalties related to faulty manufacturing processes at its plant in Cidra, Puerto Rico. GSK apparently allowed several drugs to be adulterated between 2001 and 2005, including Paxil CR, a skin-infection ointment called Bactroban, an anti-nausea drug called Kytril, and a diabetes drug called Avandamet.
The agreement between SB Pharmco Puerto Rico Inc. – an indirect subsidiary of GlaxoSmithKline – is the fourth-largest amount ever paid by a pharmaceutical company to the government to resolve civil and criminal allegations.
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