State enters into settlement with GlaxoSmithKline

The state has entered into a settlement with GlaxoSmithKline pharmaceuticals and a subsidiary that resolves allegations that the drug company sold drugs that were tainted during the manufacturing process.

Under terms of the settlement, 38 states will share in the total settlement payout of $40.75 million.  New Jersey will receive approximately $1.1 million.

“This is an important settlement for all New Jersey residents because we are all, at one time or another, health care consumers,” said Attorney General Paula Dow.  “Drug manufacturers have a responsibility to engage in strict quality control, and to ensure the products they send to market are pure and unadulterated. We are committed to ensuring they meet that responsibility.” 

According to the complaint, the drug giant and its subsidiary “engaged in unfair and deceptive practices between 2001 and 2004 when they manufactured and distributed certain lots of four prescription drugs: Kytril, a sterile drug used to prevent nausea and vomiting caused by cancer chemotherapy and radiation therapy; Paxil CR, a controlled-release formulation of the popular antidepressant drug, Paxil; Avandamet, a combination Type II diabetes drug, and Bactroban, an antibiotic ointment used to treat skin infections.”

 Specific lots of the four drugs – all of which were recalled from the market years ago – were alleged to have been adulterated because the manufacturing processes at a GlaxoSmithKline and SB Pharmco facility in Cidra, Puerto Rico,  were substandard.

The Cidra facility was closed in 2009.

In addition to New Jersey, the following states participated in the settlement: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wisconsin.


State enters into settlement with GlaxoSmithKline