GlaxoSmithKline warns of legal charge

GlaxoSmithKline (GSK) has warned it will incur a $400 million (279 million pounds) legal charge.

The fee wasn’t included in the company’s fourth-quarter 2008 earnings forecast and follows an inquiry by the US attorney’s office in Colorado into the organisation’s sales and promotions between 1997 and 2004.

In addition to the amount, the company added there were legal charges “for other matters” from the period in question.

“This decision reflects the current status of the investigation and is based upon the company’s most recent evaluation of the matter,” the organisation noted.

GSK added: “The company’s performance remains in line with its previously announced guidance.”

As a result of the fees, the company said it expected to incur a total cost in the fourth quarter of 2008 of 517 million pounds, meaning the full-year rate will be 611 million pounds.

The organisation currently employs 100,000 people in over 100 countries, of which 15,000 are engaged in medicinal research.