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Thursday, January 15, 2009
Ind. Decisions - More on "Record-Setting Zyprexa Settlement Could Come Tomorrow"
Updating yesterday's ILB entry, John Russell has this report today in the Indianapolis Star. It begins:
Hoping to end one of the most difficult and embarrassing chapters in its history, Eli Lilly and Co. said this morning it has reached a $1.4 billion settlement with federal authorities over the marketing of its top-selling drug, Zyprexa.The fine is one of the largest on record for any federal "whistle-blower" lawsuit. The settlement resolves a five-year investigation by federal prosecutors.
Such an agreement was widely expected.
Three months ago, Lilly said it was in "advanced discussions" with the U.S. Attorney's office for the Eastern District of Pennsylvania and recorded a charge of $1.4 billion against third-quarter earnings connected to a possible resolution.
As part of the deal, the Indianapolis drugmaker has agreed to plead guilty to one misdemeanor for the off-label promotion of Zyprexa for treatment of dementia, including in Alzheimer's patients, although the drug is not approved for such uses.
Zyprexa, a powerful anti-psychotic medication launched in 1996, is approved only for schizophrenia and bipolar disorder.
Under the settlement, no individual is charged with a criminal offense, meaning no Lilly officials will face prison time.
The huge fine is intended to punish the drugmaker for excesses in marketing and promotion.
Posted by Marcia Oddi on January 15, 2009 09:40 AM
Posted to Courts in general