GSK pays £1.9bn settlement for healthcare fraud

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GSK has agreed to pay the US’s Food and Drug Administration US$3bn (about £1.9bn) to settle a fraud case that the FDA had brought. The big pharma company had been accused of marketing its Paxil and Wellbutrin antidepressant products for unapproved uses, including for treating children – a practice called “off-label marketing”. The size of the fine is the largest ever. GSK also accepted charges of having not disclosed data and making unsupported safety claims over Avandia – its diabetes medicine. The case also highlighted the practice within GSK of bribing doctors such as with exotic holidays to Hawaii. The settlement involves GSK agreeing to be monitored for five years. Andrew Witty, GSK’s CEO, said action had been taken against employees who had been involved and US procedures had been improved.

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