NC to receive $2.5M from GSK settlement

Posted by David Bracken on June 4, 2014 

North Carolina will receive $2.5 million from a $105 million settlement reached between GlaxoSmithKline and 45 states over allegations that the company unlawfully marketed drugs.

The settlement resolves allegations that GSK illegally marketed three drugs – Advair, Paxil and Wellbutrin – for purposes not approved by the Food and Drug Administration. GSK reached a similar settlement with the federal government in 2012 for $3 billion.

GSK did not admit to any wrongdoing or liability under the states’ laws in this settlement.

In a statement, the company noted that it has made changes to its compensation structure in an effort to reform how it does business. GSK has stopped paying doctors to speak about products or linking the pay of sales representatives in the U.S. to the number of prescriptions issued.

“We are rolling out this innovative compensation model in the rest of the world,” the company said.

The states’ allegations against GSK said that beginning in 2000 the company promoted Advair as a first line treatment for all asthma patients, when it was only approved for patients with long-term asthma or respiratory diseases. The company also allegedly promoted Paxil as safe and effective for children and adolescents, despite the lack of FDA approval.

Wellbutrin was approved to treat major depressive disorder in adults, but the states allege that between 1999 and 2003 GSK promoted it for various other conditions for which it wasn’t approved, including treatment of obesity and treatment of sexual function.

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