Glaxo Sees $2.4 Billion Charge for Avandia, Paxil; Shares Gain
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GlaxoSmithKline Plc, the U.K.’s largest drugmaker, expects to record a 1.57 billion-pound ($2.4 billion) charge in the second quarter to settle cases including claims that its Avandia diabetes treatment led to heart attacks.
The charge equates to an after-tax cost of 1.35 billion pounds, the London-based company said in a statement today. It covers settlements over a U.S. government probe into the company’s former manufacturing site at Cidra, Puerto Rico; product-liability and antitrust cases relating to the Paxil antidepressant; and lawsuits regarding Avandia and other products, Glaxo said.