Pharmaceutical manufacturer GlaxoSmithKline is preparing to spend $3.4 billion to pay for investigations and lawsuits related to its diabetes drug Avandia.
The money—equal to the company’s 2010 fourth quarter profits—comes after allocating $2.36 billion last summer to settle 10,000 Avandia product liability lawsuits, as well as cover costs stemming from Paxil investigations and troubles related to its Puerto Rico operation.
The $3.4 billion was set aside after more lawsuits were filed over Avandia, once the world’s top-selling diabetes medicine, before it was discovered to increase the risk of heart attacks by 43%.
-Noel Brinkerhoff