British Pharmaceutical Company To Pay Texas $6.2 Million In Settlement

The pharmaceutical company that makes the asthma drug Advair and the antidepressants Paxil and Wellbutrin will pay $105 million to Texas and 43 other states for misrepresenting the uses of its drugs.

Texas Attorney General Greg Abbott scooped up $6.2 million of that from British drug maker GlaxoSmithKline, which unlawfully promoted the medications. It’s against federal law to promote uses of pharmaceuticals not approved by the Food and Drug Administration.

California Attorney General Kamela Harris announced the settlement on Wednesday. Her state gained the most from it: $7.1 million. The judgment also led to “a major change in the way pharmaceutical sales teams are motivated and compensated,” according to a statement from Abbott’s office.

GlaxoSmithKline, the U.K.’s largest drug manufacturer, must continue its ‘Patients First’ program through 2019. That plan reduces financial incentives for its sales representatives, which is designed to reduce deceptive marketing strategies.

It also calls for “scientifically trained personnel” to “develop and approve unbiased and non-promotional responses to healthcare provider questions.” Glaxo is no stranger to fines: In 2012, it agreed to pay $3 billion for similar claims that it misrepresented drugs and failed to report safety data.

That remains the largest settlement ever reached with a pharmaceutical company.

Posted in News, Pharmaceuticals.
  • Gary Weinstein

    2nd paragraph, 1st sentence. Unlawfully used twice in the same sentence

    • Matt Goodman

      Oops, thanks Gary. Nice catch.

  • It is the resonsiblity of drug manufacturers to provide the information regarding side effects.

  • Joey Diaz

    While some of these companies act responsibly, others routinely put profits above people. These companies design, manufacture, distribute and sell dangerous products that are prescribed, attached, inserted or recommended daily. It`s best to talk to a proper attorney experienced in this area, such as Joey Diaz.