Attorney General Chris Koster reached an agreement with pharmaceutical manufacturer GlaxoSmithKline, settling allegations of adulterated drugs sold in Missouri.
The company will pay the state and the federal government $9 million; the federal government will receive $5.5 million and the state will receive $3.5 million in civil damages for Missouri Medicaid program, according to a news release.
Koster participated in a $600 million nationwide federal and state settlement.
As per the settlement, GSK subsidiary, SB Pharmaco of Puerto Rico, has agreed to plead guilty to a felony violation of the U.S. Food, Drug, and Cosmetic Act and to pay $150 million in criminal fines and forfeitures.
The settlement comes after an investigation started in 2004 discovered poor manufacturing practices in GSK's Puerto Rico facility. According to allegations, the GSK facility knowingly manufactured, distributed and sold four products with below-FDA standards.
The products were Paxil CR, an antidepressant; Avandamet, a diabetes medication; Kytril, an anti-nausea drug; and Bactroban; an antibiotic ointment, the release said.
The federal government and participating states have been reimbursed for the amounts paid by the Medicaid program.
GSK also has agreed to a Department of Health and Human Services, Office of the Inspector General, Corporate Integrity Agreement, requiring scrutiny of the company's future manufacturing.[[In-content Ad]]
