Avandia cases cost GSK £2.2bn

Britain's largest pharmaceutical company has put the costs of settling legal disputes over controversial diabetes drug Avandia at a hefty £2.2 billion.

GlaxoSmithKline (GSK) said the charge equates to an after-tax cost of 1.8bn and applies to the fourth quarter of 2010. The charge covers consumer lawsuits alleging the drug harms health, in particular that it increases the risk of heart attack.

The cases also include those stemming from a US investigation of GSK's marketing practices involving a range of drugs. In July, GSK announced it would record a charge of 1.57bn in the second quarter to cover the cost of settling legal disputes.