GSK’s Deal With DoJ Is Fourth In Eight Years; Exec Liability Uncertain

GlaxoSmithKline PLC’s toughest negotiations this year have been with the federal government.

On Nov. 3, the company announced it had reached an agreement in principle to pay $3 billion to resolve three separate government investigations involving GSK’s development and marketing of Avandia (rosiglitazone); sales and promotional practices relating to Wellbutrin SR (bupropion), Advair (fluticasone/salmeterol) and seven other top selling products for the period January 1997 to 2004; and its nominal price exception to the "best price" reporting requirements of the Medicaid drug rebate program.

It is the company’s biggest deal of the year, totaling more than a quarter of GSK’s Q3 2011 revenue of £7.1 billion ($11.4 billion) Also see "GSK's Lost Quarter:...

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