GlaxoSmithKline To Record A Legal Chg For 2Q Of GBP1.57B

15th Jul 2010 07:09

LONDON (Dow Jones)--GlaxoSmithKline PLC (GSK.LN), a pharmaceutical and healthcare company, said Thursday it expects to record a legal charge for the second quarter of 2010 of GBP1.57 billion, equating to an after tax cost of GBP1.35 billion. MAIN FACTS: -The charge includes settlements, agreements in principle to settle, and other provisioning for long-standing legal cases. -The settlements and agreements in principle to settle include an investigation by the U.S. Government into the company's former manufacturing site at Cidra, Puerto Rico; product liability and anti-trust litigation relating to Paxil (paroxetine), and product liability cases regarding Avandia (rosiglitazone) and other products. -The company has reached an agreement in principle with respect to the investigation of the Cidra manufacturing facility with the U.S. Attorney's Office for the District of Massachusetts and the U.S. Department of Justice to pay a total of GBP500 million in settlement of the investigation. -Regarding Paxil, the company has now fully resolved the anti-trust litigation involving Apotex; It has also settled the vast majority of product liability cases relating to the product. -The substantial majority of the product liability cases relating to Avandia have now been settled. -With respect to both Paxil and Avandia, the legal charge includes provisioning for settled cases and an estimate for those cases which the company has received and are still outstanding. -The charge also includes provisioning relating to other legal matters. -Company continues to work to resolve an investigation commenced by the U.S. Attorney's Office for the District of Colorado into the group's sales and promotional practices. -Shares on Wednesday closed at 1181.5 pence, valuing the company at GBP61.35 billion. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 15, 2010 02:09 ET (06:09 GMT)