GSK To Pay $3 Billion to Settle Avandia Claims

Washington, DCA $3 billion settlement has been reached between GlaxoSmithKline, the maker of the controversial diabetes medication Avandia, and federal authorities, ending investigations into whether or not the company marketed drugs for unapproved uses, among other charges.

According to media reports, the GSK settlement tops the $2.3 million paid by Pfizer in 2009 over the marketing several of its drugs including its painkiller Bextra. The GSK settlement is also larger than the $1.4 billion Eli Lily paid, also in 2009, over investigations into its sales of the anti-psychotic medicine Zyprexa.

More recently, in October 2011, Abbot Laboratories agreed to pay $1.3 billion to the federal government over charges that it had illegally marketed its epilepsy drug Depakote. News reports indicate this is the third largest settlement in cases brought against big pharma for off-label marketing and Medicaid fraud. The Abbott investigation was brought about by whistleblowers who claimed the company marketed Depakote for aggression in people with autism, sexual compulsion, dementia and other disorders. Depakote is currently indicated for use in treating migraines acute manic episodes in bipolar patients and stopping seizures in adults and children.