GSK in $3bn settlement with US

 

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The Independent Online

GlaxoSmithKline has struck a $3bn (£1.9bn) deal to end US government investigations into the way it sold and developed drugs such as its Avandia diabetes treatment.

The pharmaceuticals giant said it had reached "an agreement in principle" with the authorities to conclude the disputes, with the final settlement, which will be subject to negotiations, expected next year.

The $3bn will come out of $4.6bn (£2.9bn) that GSK had already put aside in legal provisions.

News of the deal led to a rise in GSK's share price as investors welcomed the resolution of long-running issues. Among the cases covered is the Department of Justice inquiry into the development and marketing of the controversial Avandia drug, which has been linked to an increased risk of heart attacks.

GSK's chief executive, Andrew Witty, said it was a "significant step toward resolving difficult, long-standing matters which do not reflect the company that we are today". "In recent years, we have fundamentally changed our procedures for compliance, marketing and selling in the US to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently," he added.

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