GSK settlement still not enough to deter Pharma, says Public Citizen

This week’s announcement of the largest health fraud settlement ever reached between a pharmaceutical company and federal and state governments demonstrates that despite the seemingly large sums, the fines imposed on pharmaceutical companies for dangerous and illegal conduct pale in comparison to the profits generated from such activity, says Sidney Wolfe, director of consumer advocacy Public Citizen’s Health Research Group. The industry is therefore tacitly encouraged to continue its illegal activity, he argues.

Dr Wolfe noted that GlaxoSmithKline (LSE: GSK), which agreed a $3 billion settlement with the US Justice Department (The Pharma Letter July 3), pleaded guilty to illegal off-label promotion of two widely used antidepressants, the blockbuster drug Paxil and Wellbutrin, and concealing critical evidence from the Food and Drug Administration relating to the diabetes drug Avandia. GSK paid doctors to promote Paxil to children and adolescents at lavish resort conferences, despite evidence known to the company that the drug did not benefit, and actually harmed, this population, causing suicidal thoughts

The settlement of criminal and civil violations is nothing new for GSK, said Dr Wolfe. According to a 2010 Public Citizen report, GSK racked up more in fines and settlement payouts to the federal and state governments ($4.5 billion) than any other pharmaceutical company from 1991 through November 1, 2010.