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News Release

For Immediate Release
December 22, 2010

Jeffrey S. Cahill, Senior Assistant Attorney General
(603) 271-1246

Medicaid Settlements: GlaxoSmithKline and Novartis
State Recovers $1.7 Million In Settlements With Drugmakers

Attorney General Michael A. Delaney announces that New Hampshire has entered a civil settlement with GlaxoSmithKline (GSK) as part of a larger national case against the drug manufacturer. The case involves allegations that between 2001 and 2005 the company introduced certain drugs into interstate commerce whose strength, purity and/or quality fell below the standards required by the Food and Drug Administration (FDA). The alleged adulterated drugs were manufactured in Puerto Rico and included Paxil CR, Avandment, Kytril and Bactroban. The settlement addresses the amounts paid by the states' Medicaid programs as a result of GSK's conduct. New Hampshire's share of the restitution and penalties is $1.24 million.

In a second recently settled case, New Hampshire has recovered more than $489,000 from Novartis Pharmaceuticals Corporation as part of a national Medicaid settlement. In that case, it was alleged that Novartis improperly promoted Trileptal and engaged in improper conduct to induce physicians to prescribe Trileptal and certain other drugs. Trileptal is an anti-epileptic drug approved by the FDA for the treatment of partial seizures in patients who have epilepsy. The settlement resolves claims that between 2001 and 2005 Novartis promoted the sale and use of Trileptal to physicians for unapproved uses such as the treatment of bipolar disorder and neuropathic pain.

"The Medicaid program provides important prescription drug coverage. In order to protect New Hampshire taxpayers from paying no more than is necessary for this program, my Office will continue to work closely with the Attorneys General from other states in pursuing drug manufacturers when the evidence supports such action," said Attorney General Delaney.

New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658