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Oct-26-2010 21:51printcomments

Oregon to Receive $5.9 Million From Glaxosmithkline to Settle Allegations of Selling Adulterated Drugs

State of Oregon

(SALEM, Ore.) - Attorney General John Kroger Obtains $5.9 million for Oregon from Glaxosmithkline to Settle Allegations of Selling Adulterated Drugs

The global settlement involving the federal government and the states totals $750 million and a guilty plea for a felony violation of the U.S. Food, Drug, and Cosmetic Act

Attorney General John Kroger today announced that Oregon will receive $5.9 million in a pharmaceutical settlement with GlaxoSmithKline over adulterated drug allegations.

“Failing to meet drug safety standards is unacceptable,” said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General Kroger. “We will not hesitate to take action to protect Oregonians.”

The settlement requires Glaxo to pay the states and the federal government $600 million in civil damages and penalties for Medicaid and other federally-funded health care programs. Additionally, Glaxo subsidiary SB Pharmaco has agreed to plead guilty to a felony violation of the U.S. Food, Drug, and Cosmetic Act and must pay $150 million in criminal fines and forfeitures.

Oregon will receive $5,887,882.86 under the agreement.

The national federal and state civil settlement resolves allegations of poor manufacturing practices in a Glaxo facility located in Cidra, Puerto Rico. Oregon alleged that Glaxo knowingly manufactured, distributed and sold four products between 2002 and 2005 – Paxil CR, Avandamet, Kytril and Bactroban – whose strength, purity and/or quality fell below the standards required by the FDA.

Paxil CR is a controlled-release antidepressant that included split tablets, causing recipients to obtain either product with no active ingredient and/or product with only the active ingredient layer and no controlled release mechanism.

Avandamet is a diabetes medication with tablets that contained higher or lower amounts of the active ingredient than specified.

Kytril is an anti-nausea drug that was labeled as sterile, but some vials contained impurities.

Bactroban is in antibiotic ointment and cream that, in some packages, were contaminated with micro-organisms.

This settlement agreement reimburses the federal government and the participating states for the amounts paid by the Medicaid program as a result of Glaxo’s conduct. Additionally, Glaxo has agreed to the terms of a Corporate Integrity Agreement with the Department of Health and Human Services, Office of the Inspector General, which will require scrutiny of Glaxo’s future manufacturing practices.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.

Source: Oregon Attorney General

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Anonymous October 27, 2010 6:15 pm (Pacific time)

If this were a small company or person I think someone would be in prison

Josh Akers October 27, 2010 1:48 pm (Pacific time)

GSK can SUCK MY... You know where I'm going with this.

Daniel Haszard October 27, 2010 9:05 am (Pacific time)

Glaxo whistle-blower gets millions The deal with Zyprexa is that Eli Lilly pleaded guilty to criminal wrongs ("viva Zyprexa" campaign) the Zyprexa saga was rotten through and through. Eight Lilly EMPLOYEES got millions each as supposed informant 'whistle blowers'.Lawyers on BOTH sides got millions and millions......most patient claimants who got sick are 'mentally challenged' and less able to advocate for themselves. The Class action Lawsuits in the US had payouts of $85,000 BUT the lawyers got 45 percent and then the govt got most of the rest for having to take care of the victim/patients medical expenses.Soooo,$85K turned into about $9,000 for Zyprexa claimants many had their food stamps and other state benefits taken away because of their *windfall profit* making them worse off in the end. * Daniel Haszard Zyprexa victim activist and patient who got diabetes from it.

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