GSK Pays $3B to Settle US Sales, Marketing Probe
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Pharmaceuticals giant GlaxoSmithKline said Thursday it has settled a seven-year U.S. investigation into its sales and marketing practices of anti-diabetic drug Avandia for $3 billion.
The U.S. Department of Justice has been investigating the company since 2004 for a possible inappropriate use of the nominal price exception under the Medicare Rebate Program.
The settlement addresses civil and criminal liabilities and will be finalized in 2012, GSK said in a statement.
GSK CEO Andrew Witty said the matters settled “do not reflect the company that we are today.”
“The new system eliminates individual sales targets as a basis for bonuses, and instead bases incentive compensation on the quality of the service these representatives deliver to customers to support improved patient health,” Witty said.
The company said it was committed to properly promote its medicines to healthcare professionals.