Glaxo Shares Under Fire As $400 MM Lawsuit Looms
Glaxo Shares Under Fire As $400 MM Lawsuit Looms
By Mickey Clark
06/04/04 12:05 AM PT
Source: E-commerce Times
Spitzer accuses GSK of assuring doctors that the drug was safe for children to take while withholding research that indicated it was ineffective and in some case could lead to depression and even suicide. Early estimates say Glaxo's potential liability relating to Paxil could be almost US$400 million.
GlaxoSmithKline came under early selling pressure toda after it emerged that New York Attorney General Ellio Spitzer had filed a lawsuit accusing the drugs giant o fraud and endangering the lives of children
The action focuses on the group's antidepressant Paxil, which has been cleared by the Food and Drug Administration for use by adults in the US and generates profits of around US$55 million a year for the company. Spitzer accuses GSK of assuring doctors that the drug was safe for children to take while withholding research that indicated it was ineffective and in some case could lead to depression and even suicide. Early estimates say Glaxo's potential liability relating to Paxil could be almost $400 million.
In the US, doctors are allowed to prescribe some adult-approved drugs to children so long as the company supplies accurate information to prove it is safe and effective.
Glaxo says it has not seen the writ but insists it has acted responsibly in conducting clinical studies with children. It intends to fight the claims.