Glaxo Closer To Ending Denture Cream Suits

GlaxoSmithKline Plc (NYSE:GSK) is said to have paid around $120 million in order to resolve the claims made that some of their Poligrip products have caused neurological disorders as the denture cream contains zinc said the sources familiar with the accords.
GlaxoSmithKline, the biggest drug maker in the United Kingdom, has resolved more than 100 lawsuits in the past nine months which alleged that it failed to warn the consumers regarding the potential zinc related health risks. The accords are said to have averaged more than 1 million USD apiece said the sources, who have declined to be identified as they do not have the authority to speak publicly.
A London based analyst, Navid Malik with Matrix Corporate Capital LLP said in a phone interview “Glaxo Smithkline has been dogged by litigation over a wide variety of its products and has been moving aggressively to resolve those cases”. And he also said over phone that these settlements are a part of that effort.
The officials at Glaxo Smithkline had agreed to remove zinc from its denture cream products in February after the researcher linked some neurological problems including nerve damage to the extensive usage of zinc laden denture adhesives.
Zinc was present in the products Super Poligrip Original, Extra Care and Ultra Fresh products to improve the adhesive power. The company does not comment on the cases in litigation said the US based spokes person for Glaxo Smithkline Bethany Burtyk.
Glaxo Smithkline had declared in July 2010 that it had resolved some of the Poligrip suits have noted in the US Securities and Exchange Commission filings that it had “reached agreements in principle to settle the vast majority of the current cases”. Glaxo officials have not commented in the filing about the value of settlements. In order to position itself as a growth company, Glaxo Smithkline was willing to pay hefty settlements in the denture cream cases to clear away the legacy issues said an analyst.
Glaxo had earlier announced that it was taking a $3.5 billion charge to cover expenses linked to a US probe of the sales practices and product liability lawsuits related to their diabetic drug Avandia. The drug maker has set aside a reserve of $6.4 billion for the legal costs tied to its antidepressant Paxil and Avandia.
Glaxo had posted its second loss in the three quarters in the February because of the legal costs and lawsuits.