California To Receive $3.3M From Settlement With GlaxoSmithKline
On Friday, Attorney General Kamala Harris (D) announced that California is among several states that will receive funds from a settlement with GlaxoSmithKline and SB Pharmco Puerto Rico, the Sacramento Business Journal reports.
The drugmaker and its subsidiary agreed to pay $40.8 million to settle allegations that they distributed drugs manufactured under substandard processes.
California will receive $3.3 million of the total settlement, the largest share of any state involved (Sacramento Business Journal, 6/27).
The states' complaints came after a federal investigation found that between 2001 and 2005, GSK allowed for substandard manufacturing processes at its Puerto Rico plant.
Some of the affected drugs included:
- Avandamet, a diabetes drug;
- Bactroban, an antibiotic;
- Kytril, an anti-nausea medication; and
- Paxil, an antidepressant (MacDougall, AP/Miami Herald, 6/23).
GSK closed its Puerto Rico plant in 2009 and sold it in 2010, citing declining demand for the drugs made at the facility (Herbst, Reuters, 6/23).
GSK will pay 37 states and the District of Columbia to settle claims that it engaged in deceptive and unfair practices in making and distributing drugs produced at the Puerto Rico factory (AP/Miami Herald, 6/23).
In a statement, GSK did not admit any wrongdoing or liability under states' consumer protection laws (Reuters, 6/23).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.