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GlaxoSmithKline

Relenza Litigation Settlement

Date: 07/21/2008 (Date of Announcement)

Misconduct Type: Poor Contract Performance

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $19,500,000

Disposition: Settlement

Synopsis: GlaxoSmithKline settled a lawsuit filed by Australian biotech company Biota Holdings Limited over the commercialization of the flu drug Relenza (known generically as zanamivir). Under the terms of the settlement, GSK admits no liability but will make a payment of A$20 million (USD$19.5 million) to Biota. Biota developed Relenza and licensed it to GSK in 2000 which brought it to market, but it never became a top seller. Biota filed suit in May 2004, accusing GSK of failing to properly promote Relenza. Both companies will continue to market Relenza as per the initial agreement, which remains unchanged by the settlement.