Glaxo to pay $40 million in suit over drugs

CHICAGO - Drug company GlaxoSmithKline will pay $40.75 million to settle charges brought by 38 state attorneys general that the company tried to sell drugs made in a Puerto Rican plant that failed to meet manufacturing standards.

Illinois will receive $2.4 million from the settlement, Attorney General Lisa Madigan said Thursday.

The attorneys general alleged that between 2001 and 2004 GlaxoSmithKline and a subsidiary engaged in unfair and deceptive practices when they manufactured and distributed certain lots of the drugs Kytril, Bactroban, Paxil CR and Avandamet, produced in a plant in Cidra, Puerto Rico.

The investigation involved instances where certain batches were not sterilized or medication contained different dosages than indicated on the bottle, among other alleged violations, according to a statement from Madigan's office.

Kytril is used to prevent nausea and vomiting caused by chemotherapy and radiation therapy. Bactroban is an antibiotic ointment for skin infections. Paxil CR, is a controlled release formulation of the antidepressant drug Paxil. Avandamet is a combination Type II diabetes drug.

Madigan said users of these drugs are under no current risk. Drugs made at the plant in question during that time period have already been recalled or have since expired. Glaxo said it closed the facility in 2009. Consumers with additional concerns should contact their health care provider, the attorney general said.

The settlement terms state that GSK and its subsidiary, SB Pharmco Puerto Rico Inc., are barred from misrepresenting the drugs' characteristics, or causing confusion or misunderstanding about the way in which they are manufactured.

Glaxo said in a statement that it settled the charges to "avoid the expense and uncertainty of protracted litigation."

It said it closed the Cidra plant in 2009 and then sold it in 2010 after bringing it up to compliance. The company said it did not admit to any wrongdoing or liability in the settlement.