From: <b class="gmail_sendername">Gopal Dabade</b> <span dir="ltr"><<a href="mailto:drdabade@gmail.com">drdabade@gmail.com</a>></span><br><div class="gmail_quote"><br><br><p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify">
<span style="font-size:12.0pt;font-family:"Times New Roman","serif""><a href="http://www.washingtonpost.com/national/health-science/glaxosmithkline-to-pay-3b-in-largest-healthcare-fraud-settlement-in-us-history/2012/07/02/gJQArBKIJW_story.html" target="_blank">http://www.washingtonpost.com/national/health-science/glaxosmithkline-to-pay-3b-in-largest-healthcare-fraud-settlement-in-us-history/2012/07/02/gJQArBKIJW_story.html</a></span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><b><span style="font-size:18.0pt;font-family:"Times New Roman","serif"">Glaxo
to pay $3 bn for largest health fraud in US</span></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">By
Associated Press, Tuesday, July 3, 5:38 AM</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">TRENTON,
N.J. — British drug maker GlaxoSmithKline will pay $3 billion in fines — the
largest health care fraud settlement in U.S. history — for criminal and civil
violations involving 10 drugs that are taken by millions of people.</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">The
Justice Department said Monday that GlaxoSmithKline PLC will plead guilty to
promoting popular antidepressants Paxil and Wellbutrin for unapproved uses. The
company also will plead guilty to failing to report to the government for seven
years some safety problems with diabetes drug Avandia, which was restricted in
the U.S. and banned in Europe after it was found in 2007 to sharply increase
the risks of heart attacks and congestive heart failure.</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">In
addition to the fine, Glaxo agreed to resolve civil liability for promoting
Paxil, Wellbutrin, asthma drug Advair and two lesser-known drugs for unapproved
uses. The company also resolved accusations that it overcharged the
government-funded Medicaid program for some drugs, and that it paid kickbacks
to doctors to prescribe several drugs including Flovent for asthma and Valtrex
for genital herpes.</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Sir
Andrew Witty, Glaxo’s CEO, expressed regret Monday and said the company has
learned “from the mistakes that were made.”</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">This
is the latest in a string of settlements related to drug companies putting
profits ahead of patients. In recent years, the government has cracked down on
drug makers’ tactics, which include marketing medicines for unapproved uses.
While doctors are allowed to prescribe medicines for any use, drug makers
cannot promote them in any way that is not approved by the U.S. Food and Drug
Administration. </span></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""> </span></p><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Glaxo
is scheduled to plead guilty to the criminal charges and have the settlement
approved at a hearing Thursday in U.S. District Court in Boston. In addition to
the $3 billion penalty — which includes a $1 billion criminal fine and
forfeiture and $2 billion to resolve civil claims — Glaxo agreed to be
monitored by the government for five years to ensure that it complies with
marketing and other rules.</span>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">The
case against Glaxo was originally brought in January 2003 by two whistleblowers,
former Glaxo sales representatives Greg Thorpe and Blair Hamrick. In January
2011, the federal government joined in the case.</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Prosecutors
said Glaxo illegally promoted Paxil for treating depression in children from
1998 to 2003, even though it wasn’t approved for anyone under age 18. The
company also promoted Wellbutrin from 1999 through 2003 for weight loss, sexual
dysfunction, substance addictions and attention deficit hyperactivity disorder,
although it was only approved for treatment of major depression.</span></p>
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<p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Starting
in 2001, Thorpe reported to his district manager, then to Glaxo’s human
resources department and finally to Glaxo’s chief of global compliance about a
number of improper marketing practices. The compliance chief began an internal
investigation, which confirmed Thorpe’s allegations through various ways
including marketing materials and interviews with Hamrick and other sales
representatives, according to lawyers for the two men.</span></p><div><br></div>-- <br><a href="http://novartisboycott.org/petition" target="_blank">http://novartisboycott.org/petition</a><br></div><br>