Glaxo Sees $3.5 Billion Charge on Avandia, U.S. Probe
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GlaxoSmithKline Plc, the U.K.’s biggest drugmaker, said it will have fourth-quarter legal costs of 2.2 billion pounds ($3.5 billion) because of a U.S. investigation into sales practices for certain products and product-liability cases related to the Avandia diabetes drug.
The company is setting aside additional provisions for the investigation by the U.S. attorney in Colorado into the company’s sales and promotional practices of certain products, London-based Glaxo said in an e-mailed statement today. The money also will cover for the “substantial” number of new claims filed in the U.S. regarding Avandia, Glaxo said.