GSK, a large British pharmaceutical company, agreed to pay a $3 billion settlement for promoting drugs for unapproved uses and failing to report safety issues. GSK promoted the antidepressant Paxil for teenagers despite risks of suicidal thoughts, and the diabetes drug Avandia despite links to heart attacks. The settlement was the largest health fraud settlement in US history but no individuals were criminally prosecuted. Critics argue that without criminal penalties for responsible executives, large fines will not change companies' behavior.

1. GSK Health Fraud Settlement

2. Contents
• About GSK
• The Case
• Virtue Ethics
• Utilitarianism
• Duty Ethics
• Right Ethics
• Conclusion
• Reference

3. About GSK
• GlaxoSmithKline:
British healthcare company
• Headquarter: Brentford, London
• Founder:
‘Glaxo Wellcome’ & ‘SmithKline Beecham’
• Foundation: 17 January 2000
• Manufacture: drugs and vaccines
• Offices: 115 countries

4. About GSK
• Employee: over 99,000
• Single largest market: U.S.A
• Market capitalization: £79 billion
• Top ranker: 2010, 2012 and 2014

5. The Case
• Promoting unapproved drugs in U.S.A
• On July 2, 2012, agreed to pay $3 billion
• Half a dozen drugs specially following three
• Paxil: antidepressant for adults;
prescribed for teenagers;
side effects- suicidal thoughts in teenagers
• Wellbutrin: approved for depressive disorder;
prescribed for weight loss

6. The Case
• Avandia: diabetic drug ;
caused 83,000 heart attacks
• Bribed doctors with foreign trips and spa
• Celebrity doctor accepted $275,000
• Publishing medical journal with misreported
data
• MOST SHOCKING FACT:
No one was arrested

7. Virtue Ethics
• Lack of Honesty:
promoted unapproved drugs
• Lack of Truthfulness:
hid possible side effects
• Lack of Responsibility:
no responsibility to affected people
• Lack of Professionalism:
bribed doctors

8. Utilitarianism
Benefit:
• GSK earned $26 billion
• Doctors who took bribe
Loss:
• Health and financial loss of customers
• Loss of shareholders
• Reputation of GSK and judicial system of
U.S.A

9. Duty Ethics
 Duty of GSK:
• To consumers
• To protect company’s image
• To shareholders
 Duty of Government:
• To defend people from such fraudulent
• To search who are liable and punish them
 Duty of Doctors:
• To prescribe permitted medicine
• To be honest with patients

10. Right Ethics
 Right of consumers:
• To buy approved medicine
• To know the possible side effects
 Right of public:
• To be defended by Government
 Right of patients:
• To get honest treatment from doctors
 Right of shareholders

11. Conclusion
• Undoubtedly unethical
• Largest fraud settlement in U.S. history
• The chief executive stated it as a ‘mistake’
• Fines do not work
• Necessary criminal charges on individuals responsible
• Only way to change behavior: risk of jail time

12. Reference
• http://articles.mercola.com/sites/articles/archive/2012/07/16
/glaxosmithkline-plead-guilty.aspx
• http://www.nytimes.com/2012/07/03/business/glaxosmithkli
ne-agrees-to-pay-3-billion-in-fraud-
settlement.html?pagewanted=all&_r=0
• http://www.huffingtonpost.com/robert-reich/how-not-to-get-
big-pharma_b_1653588.html
• http://www.huffingtonpost.com/2012/07/03/dr-drew-
glaxosmithkline-promote
drugs_n_1647045.html?1341340758&icid=maing-
grid7|main5|dl6|sec1_lnk3%26pLid%3D175513
• http://www.npr.org/2012/07/02/156144458/glaxo-agrees-to-
pay-3-billion-in-fraud-settlement