GSK to settle Relafen litigation
GlaxoSmithKline (GSK) has agreed to settle a US antitrust case involving the nonsteroidal anti-inflammatory product Relafen.
GlaxoSmithKline (GSK) has agreed to settle a US antitrust case involving the nonsteroidal anti-inflammatory product Relafen.
It will pay US$175m (£100m) in settlement of a class action lawsuit brought on behalf of direct purchasers, including pharmaceutical wholesalers. The settlement is being submitted for review to the US district court for the district of Massachusetts, where the case has been pending since 2001. GSK said it continues to believe that its actions were appropriate in obtaining and enforcing its patent for Relafen.
Similar actions from other plaintiffs in the Relafen antitrust matter, including claims made by Teva, chain drug stores and Eon Labs have also been settled, resulting in further payments from GSK. There remains outstanding a claim from a class of indirect purchasers, including consumers, which is scheduled for trial in June 2004.
The company's financial results for Q4 2003, to be announced on 12th February, will include a legal charge of approximately £220m, including provisions for both the settled and outstanding Relafen cases. Although this charge will adversely affect the company's earnings per share in the fourth quarter the company says its earnings guidance for 2003 remains high-single digit or better percentage growth in business per-formance earnings per share at constant exchange rates.