GSK ready to pay £50m to settle patent suits
Friday 09 July 2004
GlaxoSmithKline, the UK's biggest drug maker, pumped an extra £170m into its provisions for settling lawsuits yesterday, and said it will pay £50m over allegations that it misused patent laws to keep rival antibiotics off the market.
The company said it is selling shareholdings in some of its drug development partners to offset the extra legal charge, which will be taken in its interim results. Users of GSK's Augmentin antibiotic, wholesalers and US health insurers were suing the company, claiming that it knowingly filed invalid patents to hold up the launch of copycat rivals to the drug. The $92m (£50m) settlement of the class actions has to be approved by the Virginia court which invalidated the patents in 2002.
GSK said yesterday it would also settle other outstanding legal claims in the coming months, hence the extra provisioning. "This legal charge is expected to be approximately £170m and will be largely offset by gains realised from the sale of equity investments and other income," it said in a statement.
The arrival of copycat competition to Augmentin and several other drugs has left GSK expecting only flat earnings this year, and it left its guidance unchanged yesterday.
- 1 Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
- 2 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 3 Tidal: Jay Z's Spotify rival streaming service criticised for making wealthy artists even richer
- 4 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
- 5 A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Germanwings plane crash: Transcript reveals passengers 'screamed for over five minutes' before plane crashed into mountain
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...
£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...
Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...