GlaxoSmithKline PLC
06 February 2004
GlaxoSmithKline Agrees To Settle Relafen Antitrust Litigation
London, Friday 6th February 2004
GlaxoSmithKline plc (GSK) today announced that it has agreed to settle a US
antitrust case involving the nonsteroidal anti-inflammatory product Relafen. GSK
will pay $175 million (£100 million) in settlement of a class action lawsuit
brought on behalf of direct purchasers, including pharmaceutical wholesalers.*
The settlement is being submitted for review today to the U.S. District Court
for the District of Massachusetts, where the case has been pending since 2001.
GSK continues to believe that its actions were appropriate in obtaining and
enforcing its patent for Relafen.
Similar actions from other plaintiffs in the Relafen antitrust matter, including
claims made by Teva, chain drug stores and Eon Labs have also been settled,
resulting in further payments from GSK. There remains outstanding a claim from a
class of indirect purchasers, including consumers, which is scheduled for trial
in June 2004.
The company's financial results for Q4 2003, to be announced on 12th February,
will include a legal charge of approximately £220 million, including provisions
for both the settled and outstanding Relafen cases. Although this charge will
adversely affect the company's earnings per share in the fourth quarter GSK's
earnings guidance for 2003 remains high-single digit or better percentage growth
in business performance earnings per share at constant exchange rates.
S M Bicknell
Company Secretary
6th February 2004
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and
healthcare companies - is committed to improving the quality of human life by
enabling people to do more, feel better, and live longer. For company
information and a copy of the company's product development pipeline, visit GSK
at www.gsk.com.
Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the US Private Securities Litigation Reform
Act of 1995, the company cautions investors that any forward-looking statements
or projections made by the company, including those made in this Announcement,
are subject to risks and uncertainties that may cause actual results to differ
materially from those projected. Factors that may affect the Group's operations
are described under 'Risk Factors' in the Operating and Financial Review and
Prospects in the company's Annual Report on Form 20-F for 2002.
* Further details of the case are available in the company's 2002 Annual Report
(page 106).
Enquiries:
UK Media enquiries: Martin Sutton (020) 8047 5502
David Mawdsley (020) 8047 5502
Chris Hunter-Ward (020) 8047 5502
US Media enquiries: Nancy Pekarek (215) 751 7709
Mary Anne Rhyne (919) 483 2839
Patricia Seif (215) 751 7709
European Analyst/Investor enquiries: Duncan Learmouth (020) 8047 5540
Anita Kidgell (020) 8047 5542
Philip Thomson (020) 8047 5543
US Analyst/ Investor enquiries: Frank Murdolo (215) 751 7002
Tom Curry (215) 751 5419
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