British drug maker GlaxoSmithKline agreed to plead guilty and to pay $3 billion in fines over its handling of some of the company’s blockbuster medications. According to The New York Times, the drug maker plead guilty to criminal charges involving the illegal promotion of popular antidepressants including Paxil and a failure to report important safety information about the diabetes drug Avandia.
This is the largest recovery by the federal government under its whistleblower law this year. But, critics argue that even billions of dollars in fines isn’t enough to stop large companies from engaging in fraudulent practices. What will light a fire to stop putting profits ahead of safety is punishing executives individually, critics argue.
So far, no individuals have been charged in the case. This is not the first large fine a drug maker has been ordered to pay for fraudulent behavior. In May, Abbott Laboratories agreed to pay a $1.6 billion settlement for the illegal marketing of its popular antiseizure medication Depakote. Johnson and Johnson may also be ordered to fork out as much as $2 billion for the off-label promotion of the antipsychotic drug Risperdal.
The latest settlement was recovered after four employees accused GlaxoSmithKline of engaging in illegal practices from the late 1990s to the mid-2000s. The employees claimed that the company enticed doctors to push use of the drugs by offering them exotic vacations and excursions.
In regards to Paxil, prosecutors alleged GlaxoSmithKline went as far as publishing a medical journal with misleading information about the drug and pushed off-label uses in children. The company was also charged with failing to report heart risks associated with Avandia to the FDA.
While the latest settlement is the largest of its nature and is an attempt to stop large drug companies from engaging in illegal practices, critics say these practices will continue as long as individuals aren’t being charged.
