GSK to Shell out $750Million for Providing Substandard Medicines

The British pharmaceutical Company, GlaxoSmithKline has finally decided to reach a settlement regarding the numerous criminal lawsuits and civil complaints. GSK would be shelling out compensation amounting to $750million for selling contaminated baby lotion for years, despite knowing that the ointment was not fit for use.

Apart from the contaminated ointment, the pharmaceutical Company was also facing law suits regarding the sale of an ineffective anti-depressant. The current payout is another addition to the ever increasing list of pharmaceutical Companies shelling out millions of dollars to settle such lawsuits against drug manufacturing giants.

The Company has been blamed for producing around 20 drugs, which were manufactured in contaminated conditions in a huge plant of GSK in Puerto Rico.

An ex-Quality Manager for GlaxoSmithKline, Cheryl D. Eckard, while stating in her whistle blower suit had stated that she had previously warned the Company about the standard of the medicines being produced. However, instead of listening to its manager, the Company decided to look the other way and sacked Eckard.

The drugs that have been categorized as below standards and ineffective include Paxil, an anti-depressant; Bactroban, an ointment, Tagamet, an acid reflux drug and Avandia, a diabetes drug. Though, no major cases of reactionary illness have been reported for the use of the drugs, however, it needs to be stated that such cases would be difficult to track down.

The settlement of the case was announced on Tuesday in Boston. The whistleblower would receive $96million from the case, while an amount of $600million would be directed to the federal coffers in the form of civil penalties.