GSK Unethical Practices : Huge fine for UK drugs giant – GlaxoSmithKline (SKY NEWS UK)


Unfortunately, todays’ headlines about GSK seem to miss the all too human side of unethical pharmaceutical practices. The all too human damage and destruction that comes when pharmaceutical monsters (such as GlaxoSmithKline) lie to, deceive and cheat their consumers (often of their lives and health).

If you read between the lines of these articles, you notice two drugs in particular (Avandia and Paxil ‘Seroxat’) which have harmed many tens of thousands of people; and in some cases these GSK drugs have caused gruesome deaths. It’s a shame that these news stories don’t highlight the horrendous details… With Seroxat- these details are often horrific …

The quote from Andrew Witty (GSK CEO) is quite interesting though, is he admitting that GSK engaged in unethical practices before ‘recent years’? in other words, ‘before he took the helm as CEO of GSK’…

“In recent years, we have fundamentally changed our procedures for compliance, marketing and selling in the US to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently.”

“This is a significant step toward resolving difficult, long-standing matters, which do not reflect the company that we are today,” said Andrew Witty, CEO.

So , if it doesn’t reflect the company that GSK is today ( in other words.. Witty would like us to believe that GSK doesn’t corrupt drug trials anymore or pay doctors to lie about side effects, or suppress data that results in children killing and harming themselves?) Did the old GSK (pre- 2008) engage in unethical practices… is Witty admitting it?…

Whether he is or not…

That’s just not good enough… dead Seroxat casualties can’t praise the new GSK nor can corpses from heart attack inducing Avandia… The new GSK will forever be stained by the blood of the old GSK…

A reputation sullied by bad deeds and inhuman conduct…

You can’t change the nature of a beast… GSK hasn’t changed…Don’t believe the PR Bullshit… It can’t change … it’s systemic corruption at GSK.

If Mr Witty really wants the public to believe that GSK has changed why doesn’t he acknowledge the Seroxat Scandal in the UK? …

Why doesn’t he apologize for that?…

We are all waiting Mr Witty…..

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http://news.sky.com/home/article/16102760

Huge fine for UK drugs giant

7:52pm UK, Thursday November 03, 2011

Drugs giant GlaxoSmithKline has agreed to one of the largest fines ever levied on a pharmaceuticals firm to settle a trio of disputes with the US government

The British company will pay $3bn (£1.88bn) to end three separate legal cases over the sales and marketing of nine drugs.

The long-standing claims relate to anti-depressants Paxil and Wellbutrin.

They also involve the diabetes drug Avandia, which was taken off the market in Europe over claims that it caused an increased risk of heart attacks.

GSK chief executive Andrew Witty said: “This is a significant step toward resolving difficult, long-standing matters which do not reflect the company that we are today.

“In recent years, we have fundamentally changed our procedures for compliance, marketing and selling in the US to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently.”

Glaxo added that since 2008, its US sales team was paid on an assessment of how effective treatments were rather than the number of prescriptions written.
The disputes being settled include an investigation that started in Colorado and moved to Massachusetts, and related to improper marketing of drugs between 1997 and 2004.
Another probe involves charges that GSK used the Medicaid system improperly to make additional profit from sales to the federal programme.

The Avandia case covers investigations into the way the drug was developed and then marketed. Last year, GSK took a $2.4bn (£1.5bn) charge after settling most patient liability claims relating to Avandia.

It also resolved an investigation into its former factory at Cidra in Puerto Rico, and litigation over antidepressant Paxil.

http://www.business-standard.com/india/news/gsk-will-pay-3-bn-to-settle-us-drug-row/454526/

GSK will pay $3 bn to settle US drug row
S Kalyana Ramanathan / London November 04, 2011, 0:34 IST
GlaxoSmithKline PLC (GSK) on Thursday announced it had reached a $3-billion settlement agreement with the US to conclude the global consumer healthcare company’s most significant ongoing Federal government investigations.

The ‘in-principle’ settlement of $3 billion is covered by existing provisions. GSK expects to make payments under a final agreement next year. These payments will be funded through existing cash resources, the company said in a statement.

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It said the investigation into its sales and marketing practices, which was started by the US Attorney’s office of Colorado in 2004 and taken over by the US Attorney’s Office of Massachusetts and the US Department of Justice’s (DoJ) investigation, relates to the possible inappropriate use of the nominal price exception under the Medicaid Rebate Programme and the DoJ’s investigation of the development and marketing of Avandia, an oral drug used in the treatment of type-2 diabetes.
The final settlement, which is expected to address civil and criminal liabilities, remains subject to negotiation of specific terms. It is expected to be finalised next year.

The GSK board and management team has been focused on resolving these long-standing legal matters and reducing financial uncertainty for the Group. It believes that this agreement in principle would be in the best and long-term interests of shareholders.

“This is a significant step toward resolving difficult, long-standing matters, which do not reflect the company that we are today,” said Andrew Witty, CEO.

He noted that the company, founded in 2000, had in recent years, fundamentally changed its procedures for compliance, marketing and selling in the US to ensure that it operated with high standards of integrity and conducted business transparently.

“We reiterate our full commitment to ensuring appropriate promotion of our medicines to healthcare professionals and to the standards rightly expected by the US government,” he said.

Since 2008, GSK has established a new framework for compliance in the US, based on the company’s values, policies and established industry codes of practices. It is supported by a larger compliance staff and strengthened training programmes that require certification by employees.

Other initiatives to drive change in commercial procedures have also been undertaken. They include the implementation of a new incentive compensation system for its professional sales representatives who work directly with healthcare professionals. The new system eliminates individual sales targets as a basis for bonuses.

Instead it bases incentive compensation on the quality of the service these representatives deliver to customers to support improved patient health. GSK’s US commercial practices policies now meet or exceed the US PhRMA Code governing interactions with healthcare professionals, the company said.

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