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Glaxo unit to pay $750 million in fines


SB Pharmaco Puerto Rico Inc., a unit of GlaxoSmithKline, pleaded guilty to charges it sold “adulterated” drugs made at a now-closed plant in Puerto Rico, federal regulators said Tuesday. Glaxo will pay a criminal fine of $150 million and civil penalties totaling $600 million to federal and state authorities, the U.S. Justice Department said. SB Pharmaco manufactured and distributed drugs that did not conform to current “good manufacturing” practices, according to prosecutors. The drugs, made between 2001 and 2005, are Kytril, Bactroban, Paxil CR and Avadament. They are used to treat infection, nausea, depression and type 2 diabetes. In addition, prosecutors said Glaxo knowingly made false claims to federal health care programs such as Medicaid regarding the drugs in question.

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