New York Celebrates the “Historic” Huge Fine to GlaxoSmithKline for Fraud
The authorities of the State of New York today celebrated the “historic” fine of 3,000 million dollars agreed to pay the pharmaceutical giant GlaxoSmithKline (GSK) to falsify or conceal information on three drugs.
“Drug companies are not above the law,” said today the state attorney general of New York, Eric Schneiderman, after learning of the agreement concluded by the British multinational with the Justice Department and 42 states.
The prosecutor said the pharmaceutical giant’s misconduct was “alarming” and held that after the agreement, of which New York will receive $ 146 million, now “accountable” for putting corporate profits ahead of public safety.
Scheneiderman added that “no excuses” for marketing in a “misleading” unapproved drugs, offering “bribes” to health professionals and “stealing” from taxpayers defrauding Medicaid and other programs.
The Justice Department said today that GSK promoted illegally “Paxil”, a drug for depression in patients younger unlicensed and Drug Administration (FDA), as well as money in 2003 to pay doctors to prescribe other of their drugs, the antidepressant “Wellbutrin”.
The Department of Justice ensures that GSK, based in London, reported no contraindications for its diabetes drug “Avandia” between 2001 and 2007.
In a statement, Assistant Attorney General James M. Cole said, “This action is the biggest deal in health fraud in U.S. history” and stressed that the government “will work to safeguard the integrity of the health system.”
Meanwhile, GSK CEO, Andrew Wittey, said in a statement that such practices occurred in other time in the business, but those mistakes should not be ignored and should learn from them.
After learning of the agreement, GlaxoSmithKline shares traded on the NYSE advancing 1.56% to change hands at $ 46.28, while accumulating an increase of 1.49% since the beginning of the year and 7.7% in the last twelve months.
Category: Business News
