100,000 patients died from using diabetes drug Avandia

In July GlaxoSmithKline, the UK’s largest drug manufacturer, pleaded guilty to criminal charges and agreed to a $3 billion settlement with states and the U.S. government over accusations that it improperly promoted its drugs for unapproved uses and failed to report safety data. 50,000 to 100,000 patients died from using Glaxo’s blockbuster diabetes drug Avandia because the company did not report studies that showed an increased risk of heart attack and other fatal side effects.

Glaxo’s settlement was the largest in U.S. history, eclipsing the $2.3 billion fine Pfizer paid in 2009 for over marketing its drugs including the painkiller Bextra.

GlaxoSmithKline has been involved in as many as 20 settlements and could be regarded as a “repeat offender”. The federal government and states may be announcing a record number of settlements with drug companies but the financial penalties are not stopping the unlawful action.

GlaxoSmithKline CEO Sir Andrew Witty said of the settlement:
“Whilst these originate in a different era for the company, they cannot and will not be ignored. On behalf of GSK, I want to express our regret and reiterate that we have learnt from the mistakes that were made. We are deeply committed to doing everything we can to live up to and exceed the expectations of those we work with and serve.”

Since 2009 state governments have finalized more than twice as many settlements, for more than six times as much money, as they had from the previous 18 years combined,” the report said. GlaxoSmithKline (GSK), Johnson & Johnson (JNJ) and Abbott Labs (ABT) accounted for two-thirds of the financial penalties paid to state governments and Washington, according to the report.