Pharma Roundup: Glaxo's $400 Million Penalty, Cuts at AstraZeneca, and More

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GSK to lose $400 million on legal challenge — Legal action against GlaxoSmithKline, stemming from the state of Colorado’s allegations of improper marketing on nine top products, will cost $400 million, the company has announced. The charge will appear in the fourth quarter results due in February. [Source: WSJ Health Blog]

AstraZeneca to cut thousands more jobs — AZ has revised its cost-cutting plans and now expects to eliminate a further 7,400 positions by 2013. That puts the announced total around 15,000. [Source: FiercePharma]

Sepracor eliminates 940 Lunesta-related positions — Now that popular sleep aid Lunesta is facing generic competition, the Massachusetts-based company that makes it will eliminate a mix of contract and salaried employees that support it. [Source: FierceBiotech]

Novartis exec predicts further consolidation — Daniel Vasella, CEO of Novartis, says that he sees more Pfizer/Wyeth-scaled M&A activity for the industry, but that Novartis will focus on smaller acquisitions. [Source: The Financial Times, via Corey Nahman]

Tags: AstraZeneca Plc., Novartis AG, Mergers & Acquisitions, Corporate Law, Blogging, Investment, Finance, Business Operations, Internet, John Maas

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GSK writes off $400M for off-label deal

Fierce Pharma - 298 days 11 hours 19 minutes ago

It's a third strike for drugmakers facing off-label marketing probes: GlaxoSmithKline says it's taking a $400 million charge in the fourth quarter because of an investigation into its sales and marketing practices. The Colorado U.S. Attorney's Office has been looking into Glaxo's sales practices for nine of its best-selling meds from 1997 to...
Drug groups wilt as financials show signs of recovery

Financial Times - 271 days 58 minutes ago

Drugs stocks were left behind yesterday as defensive sectors missed out on a FTSE 100 rebound. GlaxoSmithKline and AstraZeneca closed lower as Goldman Sachs analysts called "the end of the strong balance sheet trade
Pharma companies win reversal of US fraud pricing verdicts

Scrip News - 34 days 12 hours 8 minutes ago

The Alabama Supreme Court has overturned two jury verdicts against three pharmaceutical manufacturers awarding the state more than $274 million. The court ruled there was no basis for the state's claims that AstraZeneca, Novartis and GlaxoSmithKline
Now GSK stump up for dodgy marketing

PharmaGossip - 299 days 8 hours 53 minutes ago

GlaxoSmithKline is the latest drugmaker to pay the price for a government investigation of off-label marketing. The company said it's taking a $400 million hit over a Justice Department investigation of the way Glaxo marketed top drugs. Glaxo said it would take the charge in its fourth-quarter results due to an investigation initiated by the...
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Reuters UK - 343 days 13 hours 57 minutes ago

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