GlaxoSmithKline reaches agreement in principle to resolve multiple investigations with US Government
- $3 billion settlement covered by existing legal provisions
- Fundamental changes to US compliance, marketing and selling procedures implemented in recent years
GlaxoSmithKline plc (GSK) today announced that it has reached an agreement in principle with the US Government to conclude the Company's most significant ongoing Federal government investigations, specifically: the investigation into GSK's sales and marketing practices begun by the US Attorney's office of Colorado in 2004 and later taken over by the US Attorney's Office of Massachusetts; the U.S. Department of Justice's investigation of possible inappropriate use of the nominal price exception under the Medicaid Rebate Program; and the Department of Justice's investigation of the development and marketing of Avandia.
The final settlement, which is expected to address civil and criminal liabilities, remains subject to negotiation of specific terms and is expected to be finalised in 2012. The settlement of $3 billion is covered by existing provisions and GSK expects to make payments under the final agreement in 2012. These payments will be funded through existing cash resources.
