GSK to take another $3.4B charge for Avandia litigation

News just released 30 min. ago. This $3.4B is on top of the previous $2.4B charge last year. And it may not be the last of it either. These legal fees essentially wipe out any profits the company ever made on this drug. Layoffs bloodbath will continue. Get out while you still have a job.

Monday January 17, 2011, 2:32 pm

LONDON (AP) -- Pharmaceutical company GlaxoSmithKline PLC said Monday it will take a 2.2 billion pounds ($3.4 billion) charge against earnings in the fourth quarter to provide for litigation over its diabetes drug, Avandia.

The company said the charge is due mainly to additional costs related to the investigation of the company's sales and promotional practices by the U.S. Attorney for Colorado.

In September, European regulators ordered Avandia off the market and the U.S. Food and Drug Administration restricted its use in the United States because of evidence that the drug increased the risk of heart attacks.

The charge is in addition to a charge of $2.4 billion announced in July, Glaxo said. The company said it has continued to receive new claims.

GlaxoSmithKline shares were down 0.1 percent at 1,223.5 pence following the announcement.

"We recognize that this is a significant charge, but we believe the approach we are taking to resolve long-standing legal matters is in the company's best interests," said P.D. Villarreal, senior vice president for global litigation.

"We have closed out a number of major cases over the last year and we remain determined to do all we can to reduce our litigation risk," he said.

There was no certainty that the provisions announced will cover the full legal bill, the company said.

 

Buzz off you big meanie. GSK is a great place to work and has great products. I don't care who says otherwise.

My manager says there won't be layoffs in 2011 and I believe him. GSK managers didn't get to be managers by being dishonest.

Why don't you quit posting all of this bad stuff about GSK? At least we have jobs. What are we supposed to do - quit because of a little bad press?

You keep posting your doom and gloom "the sky is falling" propaganda. I'll continue believing GSK is a great company and I know for sure nobody is getting layed off in 2011 - not a chance.

 

That right there if funny....

 

I assume the "managers are not dishonest" was sarcasm. Remember when our supreme manager dropped the other shoe? "I swear no more layoffs" Come June, LAYOFFS

 

The company said the charge is due mainly to additional costs related to the investigation of the company's sales and promotional practices by the U.S. Attorney for Colorado.

Is that noodle neck, shakin boy, with the ethics of a wounded rattler still on the payroll-- P. Keith ?