GlaxoSmithKline (GSK) has been found guilty of paying kickbacks to doctors to prescribe medications for uses that were not approved and fined $3bn for the biggest healthcare fraud in the history of the US.
West London based Glaxo makes Lucozade, Ribena and other well-known brands - and has pleaded guilty to criminal and civil offences for 10 drugs swallowed by millions of people.
1. Doctors were bribed to prescribe commonly used anti-depressants Paxil for unapproved uses for treating childhood depression, although it had not been approved for under 18s.
2. Doctors were also bribed to prescribe Wellbutrin for weight loss, sexual dysfunction, substance addictions and attention deficit hyperactivity disorder (ADHD). It should only have been used for treating major depression.
3. For seven years, Glaxo did not report safety problems with the diabetes drug Avandia, which they knew sharply increased risks of heart attacks and congestive heart failure. Doctors discovered the deaths and dangers, but continued to be bribed to prescribe. After the bad news came out how dangerous the drug is, it was restricted in the US and banned in Europe.
4. Glaxo were helped by doctors, to promote the asthma drug Advair and two other drugs for uses that were unapproved.
5. It also overcharged the government-funded Medicaid for drugs.
6. Glaxo bribed doctors to prescribe asthma drug Flovent.
7. Doctors were also bribed to prescribe herpes medicine Valtrex - and several other medicines.
Sir Andrew Witty, Glaxo's chief executive, said: "Today brings to resolution difficult, long-standing matters for GSK. 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."
While doctors are allowed to prescribe medicines for any use. "Let me be clear, we will not tolerate health care fraud," US deputy attorney general James Cole said at the Justice Department in Washington.
United States Attorney Carmin Ortiz said, "The sales force bribed physicians to prescribe GSK products using every imaginable form of high-priced entertainment, from Hawaiian vacations, and paying doctors millions of dollars to go on speaking tours, to tickets to Madonna concerts."
The problem is that GSK can easily pay the $3bn in cash. It's no real punishment.
It's about time complementary and alternative therapies that achieve better results than harmful illegal drugs, are prescribed instead. Now that would be a real punishment.