GSK statement on agreements with State Attorneys General on former Cidra manufacturing facility

GlaxoSmithKline (GSK) has agreed to pay $40.75 million, which will be divided among 37 states and the District of Columbia, as part of an agreement reached related to events during the early 2000s at its former manufacturing facility in Cidra, Puerto Rico.

The company chose to settle the matter, which it initially disclosed in its 2010 fourth quarter results and its 2010 annual report, to avoid the expense and uncertainty of protracted litigation and trial. The company did not admit to any wrongdoing or liability of any kind under these states’ consumer protection laws in this settlement.

In 2009, GSK closed the plant because of declining demand for the medicines made there. GSK sold the facility in 2010. Prior to selling the facility, brought it into compliance and to a high level of performance that satisfied both GSK and the FDA.

GSK’s manufacturing division has a strong track record of quality and compliance with current Good Manufacturing Practice (cGMP) requirements. Various regulatory agencies – including the FDA – conduct an average of more than 100 inspections each year at over 80 GSK manufacturing sites located in over 30 countries. The FDA has raised no material issues as a result of its very thorough inspections.