Pharmaceutical Giant GSK to Pay $3B in Largest-Ever
Health Care Fraud Case
Healthcare giant GlaxoSmithKline has agreed to an unprecedented
$3 billion settlement with the U.S. government over allegations that the company
advertised drugs for uses not approved by the Food and Drug Administration and then used
lavish gifts to convince doctors to prescribe the drugs.The multi-billion
dollar settlement is the largest in U.S. history for alleged healthcare fraud, government officials
said.In one instance, a drug was widely promoted to help treat depression even
though the FDA had never tested it for such a use, according to the Department of Justice.
In another, prosecutors said GlaxoSmithKline, or GSK, advertised the drug Paxil
for use on children, despite the FDA not having approved antidepressant for
anyone under 18. A notice
posted on the website for the U.S. National Library of Medicine warned that
a small number children to young adults taking Paroxetine -- which is sold
under the brand name Paxil -- in clinical studies "became suicidal."The
government also said that GSK failed to report relevant safety information
about the popular diabetes treatment Avandia to the FDA and even directly paid
medical professionals to push the product on doctors for its alleged benefits for the heart --
even though GSK had no scientific data to back up that claim.In all, GSK
pleaded guilty to three criminal charges for which it will pay $1 billion and
another $2 billion will be paid in civil liabilities under the False Claims
Act.GSK is a major manufacturer of prescription medication, vaccines and consumer healthcare products.
On its website, the company boasts, "every minute more than 1,100
prescriptions are written for GSK products."In a 2011 Corporate
Responsibility Report, GSK addressed the government's allegations broadly,
saying, "Some people are concerned that marketing by pharmaceutical
companies may exert undue influence on doctors, that sales representatives may
not always give doctors full information about the products they are promoting,
or that there may be promotion of medicines for unapproved uses."GSK goes
on in that document to say that the company has "fundamentally changed our
procedures for compliance, marketing and selling in the USA to ensure that we
operate with high standards of integrity and that we conduct our business
openly and transparently."But critics at the Taxpayers Against Fraud
non-profit group said that while recovering the money was a positive step,
little is being done on a personal level to combat widespread fraud from the
industry's top moneymakers – including putting executives behind bars."The
bad news is that monetary penalties are not enough to stop rampant fraud... If
we want to stop fraud, we need to recover America's stolen billions and we need
to make sure that key players lose their jobs, their bank accounts, and their
freedom," said Patrick Burns of Taxpayers Against Fraud. "Once the
pain is personal and well-timed, the change in conduct in fraudster-companies
will be very rapid."ABC News' Lee Ferran and Brian Hartman contributed
to this report
SO,
when you hear or see ads about lawyers pursuing lawsuits against poor
defenseless and honest pharmaceutical companies, physicians, and insurance
companies you should be sure to believe the ads because they are the ones who
are really looking out for your best interests.
1 comment:
OK, but what happens to the doctors who prescribe these drugs? Should they not have some accountability?
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