GlaxoSmithKline to take $3.4B Avandia charge

GlaxoSmithKline said Monday it expects to record a $3.4 billion legal charge, tied to legal issues involving its diabetes medicine Avandia, for the fourth quarter of 2010.

The London pharmaceutical giant, which has a major presence in the Philadelphia region, said the charge primarily relates to “additional provisioning” in regard to the investigation by the U.S Attorney’s Office for the District of Colorado into GlaxoSmithKline’s sales and promotional practices, and for product liability cases regarding Avandia.

“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 at GlaxoSmithKline (NYSE:GSK). “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.”

Read Full Article from Bizjournals.com

- Posted: 2011-01-17 14:17:38

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