GlaxoSmithKline agrees to pay $229 million to settle state-related Avandia claims in US

GlaxoSmithKline stated in a US Securities and Exchange Commission filing Wednesday that it reached settlements in principle to pay a total of $229 million to eight US states to resolve lawsuits on the development and marketing of the diabetes drug Avandia (rosiglitazone). Kentucky, Louisiana, Maryland, Mississippi, New Mexico, South Carolina, Utah and West Virginia had opted out of a 2012 settlement in which GlaxoSmithKline agreed to pay $90 million to 37 states and the District of Columbia over Avandia marketing.

The company also said in the SEC filing that the settlement covers separate allegations brought by Louisiana regarding some of its other products. In their lawsuits, the states generally argued that GlaxoSmithKline misrepresented the safety and efficacy of Avandia. However, company spokesperson Mary Ann Rhyne said the settlement does not imply an admission of liability and was undertaken to avoid the costs and uncertainty of protracted litigation.

GlaxoSmithKline reiterated that it acted appropriately in its clinical development and marketing of Avandia, as well as in monitoring the safety of the drug and updating its label as new information was obtained. The state-related settlements follow the company's $3-billion resolution of federal criminal and civil investigations in 2011 into its marketing practices for Avandia and other matters.

For related analysis, see ViewPoints: GlaxoSmithKline – Out with the old and in with the new.

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