By Michael Calia
GlaxoSmithKline reached a $105 million settlement with several
U.S. states over allegedly unlawful marketing of asthma and
antidepressant drugs, several states said Wednesday.
The pharmaceutical company confirmed it had reached an agreement
with 44 states and the District of Columbia, resolving claims
relating to violations of state trade-practice laws.
"This settlement requires GSK to pay a significant penalty and
imposes strong new rules designed to prevent future
misrepresentations of GSK products," California Attorney General
Kamala D. Harris said in a news release.
California is getting the largest portion of the settlement
payout, about $7.1 million, Ms. Harris's office said.
The company didn't admit any wrongdoing or liability under the
settlement and said the agreement is similar to a settlement it
reached with the federal government in 2012. At the time, Glaxo
agreed to a $3 billion criminal and civil settlement with the U.S.
after federal authorities claimed the company used illegal
marketing strategies to promote its Advair asthma inhaler.
The settlement with the states centers on allegations dating
back 14 years. The states said Glaxo illegally promoted Advair, as
well as its Paxil and Wellbutrin antidepressants.
Under the agreement, Glaxo "is prohibited from providing
incentive payments to its salespeople, which serve to encourage
off-label promotion of drugs, and from using paid doctors to
promote its products, " the California attorney general's office
said.
For its part, Glaxo said it has stopped paying doctors to speak
about its products or attend medical conferences. The company added
that it no longer links the pay of its sales representatives to the
number of prescriptions issued for Glaxo drugs. The company said it
implemented its new compensation model for sales reps in the U.S.
in 2011, and that it plans to roll out the model world-wide over
the next two years.
Write to Michael Calia at michael.calia@wsj.com
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