Glaxo Set To Pay Out After Diabetes Drug Linked To Heart Attacks (GSK)

GlaxoSmithKline GSK is set to pay $250 million to settle Avandia death lawsuits according to Bloomberg. The litigation is based upon the Avandia diabetes drug that is linked to claims of increased heart-attack and stroke risks. The total sum looks to settle about 5,500 claims at an average of $46,000 per case. Glaxo stopped promoting Avandia worldwide after regulators withdrew the drug from the European market and limited the sales in the U.S. because of studies linking the drug to increased risks of heart attacks. Sales of the drug fell 43 percent to $710M in 2010. The company has set aside $6.4B to deal with legal costs tied to Avandia. The first trial was slated to begin January 31, 2011 in Philadelphia. Deborah Burford v. SmithklineBeecham was filed in regards to the death of James Burford in 2006 who died from a fatal heart attack in his home after taking Avandia for 15 months. Burford was 49 at the time of his death. Glaxo is currently trading 1.74% higher than its Friday close of $38.01.