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GSK to pay $3bn in fraud settlement

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    Drug giant GlaxoSmithKline (GSK) will pay $3bn (£1.9bn) in the largest health care fraud settlement in US history. :eek: This is pretty big, any thoughts on how this will impact GSK and the pharmaceutical industry as a whole? Shareholders beware.

    http://www.bbc.co.uk/news/world-us-canada-18673220
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    (Original post by Psilocybe_frog)
    Drug giant GlaxoSmithKline (GSK) will pay $3bn (£1.9bn) in the largest health care fraud settlement in US history. :eek: This is pretty big, any thoughts on how this will impact GSK and the pharmaceutical industry as a whole? Shareholders beware.

    http://www.bbc.co.uk/news/world-us-canada-18673220
    another case against the privatisation of the NHS

    Makes me wonder about the swine flu case few years ago...this the same company that produced the anti flu drug...
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    in the grand scheme of things not a lot of money for them, the damage to their rep could well cause some problems though.
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    (Original post by cl_steele)
    in the grand scheme of things not a lot of money for them, the damage to their rep could well cause some problems though.
    Net income

    £5.458 billion

    = $8.564 billion

    So 3 billion is around 35% is net income - A LOT

    And yes, the long term damage may have some effect, but really, the drug market is oligopolistic, so I expect their profits should remain stable.
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    (Original post by tehforum)
    Net income

    £5.458 billion

    = $8.564 billion

    So 3 billion is around 35% is net income - A LOT

    And yes, the long term damage may have some effect, but really, the drug market is oligopolistic, so I expect their profits should remain stable.
    oops was looking at revenue which is somewhat higher my bad
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    (Original post by tehforum)
    Net income

    £5.458 billion

    = $8.564 billion

    So 3 billion is around 35% is net income - A LOT

    And yes, the long term damage may have some effect, but really, the drug market is oligopolistic, so I expect their profits should remain stable.
    big word that :smug: kudos
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    (Original post by Nice.Guy)
    big word that :smug: kudos
    Economics ftw?

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