In this article we are going to list the 5 most fined pharmaceutical companies in the world. For a detailed coverage of this topic and a more comprehensive list please take a look at the 10 most fined pharmaceutical companies in the world.
5. Abbott Laboratories (NYSE:ABT)
Total fines incurred by the company from 2003 to 2016 (in millions): $2,582
One of the largest medical devices and healthcare companies in the world, Abbott Laboratories (NYSE:ABT) sells multiple products including Pedialyte, Similac, Ensure and ZonePerfect among others. In 2012, Abbott Laboratories (NYSE:ABT) had to pay a fine of $500 million and an additional forfeiture of $198.5 million for marketing Depakote for uses which had not been approved by the FDA.
4. Johnson & Johnson (NYSE:JNJ)
Total fines incurred by the company from 2003 to 2016 (in millions): $2,668
In terms of total revenue, Johnson & Johnson (NYSE:JNJ) is the largest pharmaceutical company in the world, even though a big portion of its total revenue is earned from consumer healthcare. Even though Johnson & Johnson (NYSE:JNJ) has lost multiple cases which have led to it paying billions in settlements, it has also paid fines for different wrongdoings, including giving bribes and kickbacks to doctors in Romania, Poland and Greece, not to mention the illegal marketing of Risperdal where Arkansas alone awarded damages worth $1.2 billion.
3. Merck & Co., Inc. (NYSE:MRK)
Total fines incurred by the company from 2003 to 2016 (in millions): $3,739
Merck & Co., Inc. (NYSE:MRK) used to be the American arm of the Germany drug company Merck Group, which was founded more than 350 years ago. Merck & Co., Inc. (NYSE:MRK) is involved in the production of vaccines, medicines, animal health products and biologic therapies. Some of its biggest brands are responsible for bringing in more than $1 billion in sales every year.
Merck & Co., Inc. (NYSE:MRK) was sued by 50,000 people who claimed that either they or their family members suffered from strokes or heart attacks after taking the drug Vioxx, and the company ended up paying over $4 billion in settlement claims. In 2000, a fraud investigation by the United States Department of Justice after allegations were brought forward that routinely overbilled Medicaid, with the company having to pay $650 million to settle the charges.
2. Pfizer Inc. (NYSE:PFE)
Total fines incurred by the company from 2003 to 2016 (in millions): $4,525
Pfizer Inc. (NYSE:PFE) has seen its reputation improve manifold after being one of the first pharmaceutical companies to come up with the Covid-19 vaccine, which has been instrumental in getting the world ahead of the pandemic in a relatively short period of time. The U.S. is the biggest market for Pfizer Inc. (NYSE:PFE) where it derives more than half of its revenue from. However, Pfizer Inc. (NYSE:PFE) has also been in hot waters over illegal marketing of different products. The first product was the illegal marketing of gabapentin for off-label uses even though it was only allowed to be used for the treatment of seizures. The company was also responsible for the illegal marketing of Bextra, which is an arthritis drug and ended up paying of fine of $2.3 billion which was the largest healthcare fraud settlement at the time.
1. GSK plc (NYSE:GSK)
Total fines incurred by the company from 2003 to 2016 (in millions): $9,775
With more than double the fines of the second placed company, GSK plc (NYSE:GSK) easily tops the list of the 10 most fined pharmaceutical companies in the world. GSK plc (NYSE:GSK) is one of the biggest pharmaceutical companies in the world recording revenues of more than £34 billion in 2021. While GSK plc (NYSE:GSK) was in the news recently for spinning off its consumer division into a new company known as Haleon.
GSK plc (NYSE:GSK) claimed an unwanted record in 2012 when it was fined the largest settlement in history for a drug company back in 2012. The settlement of $3 billion included a fine of $956 million and forfeiture of $43 million while, the remaining amount covered a civil settlement with the government. This fine was levied after whistleblowers unveiled that the company failed to report safety data pertaining to Avandia and promoted Paxil and Wellbutrin, both anti-depressants for unapproved uses. False best prices and underpayment of rebates added to the charges against the pharmaceutical giant. Not only did it have to pay the fine, GSK plc (NYSE:GSK) had to sign a corporate integrity agreement which forced the company to change the way it operates including compensation programmes for executives and sales force. As can be seen from the total fines amount, this was not the only time the company engaged in illegal practices, which is why its total fines are currently just shy of $10 billion.
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