GSK announces charges for legal matters

GlaxoSmithKline plc (GSK) today announced that it will record a legal charge in the fourth quarter of 2008 of $400 million (£278 million) relating to an ongoing investigation initiated by the US Attorney’s Office in Colorado into the Group’s US marketing and promotional practices for several products for the period 1997 to 2004. This charge is in addition to legal charges for other matters to be taken in the fourth quarter.

Issued: Thursday 29 January 2009, London, UK & Philadelphia, US

GlaxoSmithKline plc (GSK) today announced that it will record a legal charge in the fourth quarter of 2008 of $400 million (£278 million) relating to an ongoing investigation initiated by the US Attorney’s Office in Colorado into the Group’s US marketing and promotional practices for several products for the period 1997 to 2004. This charge is in addition to legal charges for other matters to be taken in the fourth quarter.

This decision reflects the current status of the investigation, and is based upon the company’s most recent evaluation of the matter. GSK is co-operating fully with the investigation.  The ultimate liability related to the investigation may vary from the amount provided as it is dependent upon the outcome of the investigatory process and potential litigation. 

This charge was not included in the assumptions made by the company for provision of legal matters when determining its earnings guidance for 2008. Excluding the effect of this charge, the company’s performance remains in line with its previously announced guidance of a mid-single digit percentage decline in 2008 business performance EPS at constant exchange rates.

GSK now expects to incur a total legal charge in the fourth quarter of 2008 of £517 million (Q4 2007: £62 million), leading to a total legal charge for the full year of £611 million (FY 2007: £255 million).

GSK will announce its full year results for 2008 on 5 February 2009.

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 further information please visit www.gsk.com

Enquiries:

UK Media enquiries:

Philip Thomson

(020) 8047 5502

 

Alice Hunt

(020) 8047 5502

 

David Outhwaite

(020) 8047 5502

 

Stephen Rea

(020) 8047 5502

 

 

 

US Media enquiries:

Nancy Pekarek

(919) 483 2839

 

Mary Anne Rhyne

(919) 483 2839

 

Sarah Alspach

(215) 751 7709

 

European Analyst/Investor enquiries:

David Mawdsley

(020) 8047 5564

Sally Ferguson

(020) 8047 5543

Gary Davies

(020) 8047 5503

US Analyst/ Investor enquiries:

Tom Curry

(215) 751 5419

Jen Hill

(215) 751 7002

Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, 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 GSK' s operations are described under 'Risk Factors' in the 'Business Review' in the company' s Annual Report on Form 20-F for 2007.