Pharmaceutical Companies with Unethical Practices

1. GlaxoSmithKline settlement: $3 billion year: 2012 http://www.huffingtonpost.com/dana-radcliffe/a-drugmakers-ethical-mist_b_1729002.html http://www.sciencebasedmedicine.org/gsk-pays-3-billion-fine/ http://www.nytimes.com/2012/07/03/business/glaxosmithkline-agrees-to-pay-3-billion-in-fraud-settlement.html?_r=0 The pharmaceutical giant and British drug maker, GlaxoSmithKline, has agreed to plead guilty and pay the government three billion dollars in a health care fraud settlement bought by the FDA. This is the largest settlement involving a pharmaceutical company in recorded history. GSK have admitted to committing three fraud charges. They promoted the off-label use of two anti-depressant drugs – Paxil and Wellbutrin. The two anti-depressants are not necessarily considered as bad medicine instead the GSK failed to apply for approval from the FDA. GSK broke the law when they marketed the drug for a non-approved use under the FDA. The second charge that was made against GSK was when they held back data and made unsupported claims regarding its diabetes drug Avandia. The third charge that was made against GSK was when their sales team used inappropriate and illegal marketing tactics to get the doctors to prescribe their drugs. In addition to using illegal marketing tactics, they offered doctors free spa privileges, trips to Jamaica and Bermuda, and concert tickets. The three criminal charges involved Paxil, Wellbutrin and Avandia and included a criminal fine of $1 billion. The remaining $2 billion involves fines in connection with a civil settlement over the sales and marketing practices of the blockbuster asthma drug Advair and several other drugs (NY Times). GSK have not only violated the rules made by the FDA but also committed basic unethical behavior. Even though the $3 billion may seem like a large amount, it represent only a small portion of what Glaxo made on the drugs. According to IMS Health, Glaxo’s diabetes drug Avandia racked up to $10.4 billion in