This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12207300

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
GlaxoSmithKline takes £2.2bn Avandia charge GlaxoSmithKline: £2.2bn charge over Avandia and legal case
(about 1 hour later)
GlaxoSmithKline has said it has set aside £2.2bn ($3.4bn) in the fourth quarter of 2010 to cover legal costs related to its diabetes drug Avandia. GlaxoSmithKline has set aside £2.2bn ($3.4bn) in the fourth quarter of 2010 to cover legal costs.
The charge is primarily due to additional costs related to the investigation of the company's sales and promotional practices in the US. The charges relate to its diabetes drug Avandia, and a federal investigation into the company's sales and promotional practices for nine other products in the United States.
Avandia was banned in Europe last year while the US restricted its use because of a suspected link to heart disease.Avandia was banned in Europe last year while the US restricted its use because of a suspected link to heart disease.
The charge is in addition to a £1.57bn charge Glaxo announced in July.The charge is in addition to a £1.57bn charge Glaxo announced in July.
That was to cover various legal settlements, including claims over Avandia, as well as antidepressant Paxil and an investigation into standards at a Puerto Rico factory. That was to cover various legal settlements, including claims over Avandia, as well as antidepressant Paxil and an investigation into standards at a factory in Puerto Rico.
"We recognise 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 PD Villarreal, senior vice president at Glaxo's global litigation team."We recognise 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 PD Villarreal, senior vice president at Glaxo's global litigation team.
"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.""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."
Glaxo shares fell 2% after the announcement in afternoon trading in London. The investigation into the promotion of nine products is conducted by the US attorney's office in Colorado, and focuses on a period of 1997 to 2004. Glaxo does not disclose which products are under investigation, but says it is with regards to so-called "off-label promotion", when a drug is promoted for a use that it has not been approved for.
The new charges are expected to more than wipe out its profit for the quarter.
Glaxo shares fell 2% after the announcement in afternoon trading in London, before closing at 1205p, down 20p or 1.63%.