DRUGS giant GlaxoSmithKline expects to restart sales of two key treatments in the US this summer after taking a huge step toward resolving yet another damaging spat with American regulators. The company has struck an agreement with the US Food and Drug Administration that will see it escape without a fine after an investigation found a series of problems at its Puerto Rico plant.
It was forced to halt production of anti-depressant Paxil and diabetes drug Avandamet at the site after officials found some drugs were breaking up and others contained the wrong dosages.
Despite having to post a $650m (£341m) letter of credit to US authorities for 90 days until the problem product is 'destroyed or reconditioned', Glaxo insiders were breathing a huge sigh of relief.
The news is also a boost for SkyePharma, the British biotech that gets a royalty on Paxil sales. A Glaxo spokesman said: 'This is a very positive step forward for GSK in resolving these issues.'
The company was today due to post first-quarter profits of £1.5bn.