GlaxoSmithKline Pays $750 Million Over Defective Drugs

London, UK: GlaxoSmithKline (GSK) has agreed to pay $750 million to resolve allegations that it improperly made drugs and sold adulterated drugs. The settlement ends the longest running federal investigation of the pharmaceutical company's former manufacturing plant in Puerto Rico. GSK closed the plant in 2009, and no longer owns it.

Allegations brought by the federal government included mixing different pill strengths, such as 10 mg and 30 mg tablets in the same bottles, and that the medications Bactroban and Kytril, were contaminated with microorganisms. Further, there were allegations that GSK's drug Paxil CR (controlled release) which was made in two layers, could fall apart, effecting the efficacy of the medication. In all some 20 drugs were reportedly affected, including Avandia, Coreg, Paxil and Tagamet.

Cheryl Eckard, a former manager of quality assurance for GSK will receive some $96 million from the settlement. She became the whistleblower which ultimately resulted in her being fired.

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Published on Oct-26-10