The final settlement, which includes civil and criminal liabilities, is expected to be finalized next year, according to London-based GlaxoSmithKline. The agreement will settle the company's three “most significant ongoing” investigations, one of which began in 2004, it said.
“This is a significant step toward resolving difficult, long-standing matters which do not reflect the company that we are today,” GlaxoSmithKline CEO Andrew Witty said in the statement. “In recent years, we have fundamentally changed our procedures for compliance, marketing and selling in the U.S. to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently.”
The company said it developed a new incentive compensation system for its sales representatives. The new system rewards sales representatives on the quality of services they provide to healthcare professionals; the previous system used individual sales targets as the basis for bonuses.
The GlaxoSmithKline settlement exceeds the $2.3 billion that Pfizer agreed to pay in 2009, which the Justice Department had said was the largest healthcare fraud settlement.