GlaxoSmithKline fined $3bn for bribing doctors, mis-selling drugs

Geez, I knew about the marketing violations but not the bribes. Too bad the fine is pittance to them.

Este
 
I wonder if this is the largest fine ever?

This article from three years ago is about a $1.415 billion settlement paid by Eli Lilly, which was described in the article as "the largest fine ever". It was for similar reasons: Marketing a drug for unapproved uses.

Can anyone find a larger fine?
 
Puppycow said:
This proves that Big Pharma is evil, and therefore alternative medicine is vindicated.
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Uh? Is this comment sponsored by InstaStraw inc.?

Puppycow said:
Well, I wouldn't call it a "pittance". $3bn actually seems like real money.

A "pittance" would be something like the $25,000 fine that Google received recently.
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It's still a pittance to them. They have still made a profit from their crimes. They can easily afford to pay it and carry on their business. No one, as far as I know, is going to jail.
 
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JihadJane said:
"Despite the large fine, $3bn is far less than the profits made from the drugs. Avandia has made $10.4bn in sales, Paxil took $11.6bn, and Wellbutrin sales were $5.9bn during the years covered by the settlement ..."
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They're a bunch of douches but those numbers are a bit unfair. The former are sales, not net income. The latter is net outgo.
 
SezMe said:
They're a bunch of douches but those numbers are a bit unfair. The former are sales, not net income. The latter is net outgo.
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It's also still undetermined whether the net profit from misbehaving, the amount of money they made being naughty minus the amount of money they would have made anyway just by selling the drugs legitimately, was three billion.

If $3b fines mean they are better off playing the game legally than cheating, then they've got good reason to play fair in future.
 
SezMe said:
They're a bunch of douches but those numbers are a bit unfair. The former are sales, not net income. The latter is net outgo.
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True but $3b still seems like pocket change to them. I would like to start seeing criminal charges for withholding/manipulating data that results in harm. How can people have any confidence in an industry that pulls this crap?

Este
 
jhunter1163 said:
Their net operating profit was slightly over $2 billion in the first quarter of 2012. So a $3 billion fine is certainly not a pittance to them. It more than ate an entire quarter's profits.
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Who cares? They killed a lot of people. Crippled countless others. There should be jail time.
 
SezMe said:
They're a bunch of douches but those numbers are a bit unfair. The former are sales, not net income. The latter is net outgo.
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Yeah, I was going to mention that.

The article is conflating sales with profits. To calculate the profits you must subtract the costs of R&D, marketing and manufacturing the drug.

Doesn't look like their stock price has taken much of a hit though, at least not yet. Maybe this fine was expected though, and already factored into the price?
 
Puppycow said:
You'll have to do better than that.
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Wow. Really? I already gave you a link so you can hear the victims in their own words.

If you want some "science" behind the dangers of these drugs, there's plenty of that too. This is common knowledge. Even the manufacturer admits it can cause suicides.

http://www.furiousseasons.com/archives/2009/10/study_paxil_is_worst_drug_for_suicide_attempts.html

Antidepressants increased the risk compared to placebo of suicidal thinking and behavior (suicidality) in children, adolescents, and young adults in short-term studies of major depressive disorder (MDD) and other psychiatric disorders. Anyone considering the use of PAXIL or any other antidepressant in a child, adolescent, or young adult must balance this risk with the clinical need. Short-term studies did not show an increase in the risk of suicidality with antidepressants compared to placebo in adults beyond age 24; there was a reduction in risk with antidepressants compared to placebo in adults aged 65 and older. Depression and certain other psychiatric disorders are themselves associated with increases in the risk of suicide. Patients of all ages who are started on antidepressant therapy should be monitored appropriately and observed closely for clinical worsening, suicidality, or unusual changes in behavior. Families and caregivers should be advised of the need for close observation and communication with the prescriber. PAXIL is not approved for use in pediatric patients
http://us.gsk.com/products/assets/us_paxil.pdf
 
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