Avandia drug company GlaxoSmithKline announced today that it will take a $3.4 billion legal charge against earnings in the fourth quarter 2011 to cover Avandia settlements and legal costs.
“We have closed out a number of major [Avandia] cases over the last year and we remain determined to do all we can to reduce our litigation risk,” said GSK’s senior vice president for global litigation in a prepared statement. “”We recognize that this is a significant charge, but we believe the approach we are taking to resolve long-standing legal matters is in the company’s best interests.”
GSK said it continues to receive new legal claims involving the diabetes drug. Avandia lawsuit attorneys continue to file cases across the U.S.. Avandia settlements in 2011 are being won against the drug company on stroke, congestive heart failure, and Avandia heart attack cases.
The new charge follows a $2.4 billion charge announced on July 15, 2010, one day after a FDA drug advisory panel recommended revised warnings and tighter restrictions on use of the Type 2 diabetes drug instead of an Avandia recall in the United States.
On September 23, 2010, the FDA drastically restricted use of the drug and required stronger warnings about Avandia risks. The same day, the European Medicines Agency suspended the drug from the EU market. Shortly thereafter, GSK decided to stop promoting the drug.
Avandia sales peaked at about $3.3 billion in 2006. It was the world’s best-selling diabetes pill. Sales dropped sharply after a 2007 study was published in the New England Journal of Medicine linking use of Avandia to heart attack and cardiovascular death risks much higher than other treatments for Type 2 diabetes. Sales steadily declined to $1.2 billion in 2009. Sales of Avandia in 2011 and beyond are expected to be insignificant.
GSK said it remains unknown whether the $3.4 billion legal charge announced today will cover the full costs of Avandia settlements and legal costs.
If you or a loved one has suffered a heart attack or stroke after taking the diabetes drug Avandia, you may be entitled to a 2011 Avandia settlement.
Time is limited to file an Avandia lawsuit. The attorneys at AvandiaRecallNews.com no longer are accepting new Avandia cases.