GlaxoSmithKline, a British pharmaceutical company, will pay $750 million to settle a case that alleged it sold and manufactured contaminated drugs. The Company will pay $150 million in criminal fines and $600 million in civil penalties. These fines and penalties are all related to its manufacturing facility in Cidra, Puerto Rico.
Although no individuals appear to have been harmed by GlaxoSmithKline's indiscretions, the potential for serious complications still exists because of the number of improper drugs that were distributed. Some of the problems at the plant included the failure to ensure that pills were free from contamination by microorganisms and distributing some controlled release tablets that did not have any therapeutic effect. The drugs affected included Paxil, Bactroban, Kytril and Advandamet.
The investigation was begun by an employee of GlaxoSmithKline, Cheryl Eckard, who discovered numerous violations including contaminated water and air systems in the manufacturing plant in Puerto Rico. She reported the problems to her superiors and eventually to the Food and Drug Administration as a whistleblower.
Eckerd will receive $96 million of the settlement under the Federal False Claims Act. This is believed to be the largest whistleblower award ever paid under the Federal False Claims Act.
