GlaxoSmithKline Pays $150 Million to Settle Drug Pricing Fraud Case
I am pleased to offer my hearty congratulations to GSK for admitting no wrongdoing in response to allegations that it defrauded the US government of millions of dollars. Oh, and for paying only $150 M for this privilege. That’s quite a return on investment, wouldn’t you say? Oh sure, GSK doesn’t accrue tangible benefits for the payment, but think of all the intangibles. GSK can now proudly advertise during the prime time news hour that they not only deliver tomorrow’s cures but also do not admit to defrauding federal and state governments. Hey now, quite an achievement. Seriously, no one who cares about the future of this industry should defend such alleged practices or out-of-court settlements. Investors in the sector should not be pleased with this settlement eiether, because there are other, more serious suits pending. And there will be bigger, much bigger settlements to be paid if this case is any indication. This case and its conclusion was a dark stain on an already badly tarnished industry image. How many more stains can pharma sustain before it is no longer recognizable?
