GSK settles Avandia case out of court
pharmafile | February 1, 2011 | News story | Sales and Marketing | Avandia, GSK, diabetes
GlaxoSmithKline this week settled a US federal lawsuit regarding its diabetes drug Avandia before it went to court.
The company dipped into the £2.2 billion war chest it set aside last month to deal with the legal battles it faces over the brand, which a series of plaintiffs claim causes heart attacks and strokes.
Set for 31 January, this trial was to be held in the district court in Philadelphia and was brought by the family of Avandia user James Burford, who died in 2006.
The company says it will always weigh up the cost of defending itself and the penalties it may incur against the cost of settling out of court.
A GSK spokeswoman told InPharm: “There are many circumstances where a company may determine to resolve certain matters in order to avoid the inherent risks and significant costs of litigation.
“GSK continues to stand behind the safety and efficacy of Avandia when used appropriately and according to its label,” she added.
No details of this week’s settlement were forthcoming, but GSK says it has also resolved all cases represented by US attorneys Joseph Zonies and Thomas Cartmell.
GSK’s mammoth legal write-down was booked into the company’s fourth quarter accounts for 2010 and followed months of tribulations.
The company had already set aside £1.58 billion to settle legal disputes including some involving Avandia last year.
The drug was withdrawn from the market altogether in Europe and allowed to remain in the US only with further restrictions.
GSK was also accused by US senators of covering up risks associated with Avandia, which came to light in internal emails.
And this is far from the end of the road since there are thousands of lawsuits still outstanding against Avandia.
“There are lots of things coming through,” the spokeswoman concluded. “We will evaluate each of the situations on their merits.”
Adam Hill
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