GSK’s Paxil bill said to be $1Billion… so far

For drug companies like Glaxo, it seems that fines to settle lawsuits because of the unsafe nature of drugs like Seroxat are just part of its overall marketing budget – you get the impression that Glaxo doesn’t care how much money it has to put aside to cover potential fines because its drugs make such huge profits – even if Seroxat has cost the company $1 billion IN FINES so far that doesn’t matter because its earned so much more profit than that already – patient safety is not the issue here… making money is, though.

This from  Bloomberg:

GlaxoSmithKline has paid out almost $1 billion to settle lawsuits related to its antidepressant Paxil, Bloomberg reports, citing court records and sources familiar with the litigation. That total includes about $390 million for suicides or suicide attempts allegedly linked to the drug. Some $200 million has gone to settle cases related to Paxil addiction and birth defects and another $400 million to settle antitrust, fraud and design claims.

Some of these settlements, of course, have been made public. And the company had a provision for legal and other disputes of $3 billion-plus at the end of 2008 (that figure includes all disputes, not just Paxil). But analyst Navid Malik of Matrix Corporate Capital told Bloomberg that the $1 billion in legal costs for Paxil “would be worse than many people are expecting.”

The company wouldn’t confirm the $1 billion tote-up. “It would be inappropriate and potentially misleading to aggregate payments in these various types of litigation,” a spokeswoman told the news service via email.

That figure could continue to grow, some industry-watchers believe. Some 600 birth-defect claims remain outstanding. But only about a dozen of the suicide-related suits haven’t been settled. “A liability totaling $1.5 billion is possible,” a Panmure Gordon analysts wrote to investors after a birth-defect case was decided in favor of the plaintiff.

But with cases remaining untried–and even some of the wrapped-up suits awaiting appeal–there’s no way of knowing where the eventual total will fall. And to put things into perspective, even a $1.5 billion legal bill won’t set any records.

Related Articles:
Jury: Glaxo’s Paxil caused birth defects
GSK exec memo cited in Paxil suit
GSK ordered to hand over emails in Paxil suit
Test Paxil case hits court next week
AP: Glaxo reps aided Paxil ghostwriting


3 Responses to “GSK’s Paxil bill said to be $1Billion… so far”

  1. Lynn Says:

    I had no idea so much money was being awarded to victims. That should tell lawmakers that this is a systemic problem affecting society which calls for GSK to be forced to answer questions publicly. Why should people running a huge company that is hurting people be allowed to say that they don’t want to talk? It sounds to me like government action is the only thing which will stop these people. What motivates English lawmakers? I know money and huge public outrage seems to control the U.S. Congress.

  2. Drug regulation – keeping the public safe? « seroxat secrets… Says:

    […] GSK’s Paxil bill said to be $1Billion… so far […]

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