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Lilly Agrees to Pay $690M to Settle Zyprexa Class Action Lawsuits
Source: PR Newswire
Published: June 15, 2005
Eli Lilly & Co. said it has agreed to pay $690 million to settle about 8,000 Zyprexa lawsuits pending in the United States, over its alleged failure to provide adequate warning that the drug could increase a patients' risk for developing diabetes.
"While we believe the claims are without merit, we took this difficult step because we believe it is in the best interest of the company," said Sidney Taurel, chairman, president and chief executive officer of Eli Lilly and Company.
Lilly said the agreement will also result in the dismissal of claims against physicians and other health care professionals named as co-defendants in any cases covered by this settlement.
The exact number of claimants covered by this settlement is unknown, but is estimated to be 8,000, comprising approximately 75 percent of claims identified to Lilly.
Most of the lawsuits claimed that before September 2003, the information in the medication label, which listed the risk of hyperglycemia and diabetes as an infrequent adverse event since 1996, was not adequately displayed. In September 2003, the FDA required label changes for all atypical antipsychotics to warn against this risk.
The agreement involves patients alleging they developed diabetes-related conditions from their use of Zyprexa. Patients who are not covered by the final settlement are those represented by attorneys who are not participating in the agreement in principle.
Lilly said is prepared to continue its vigorous defense of Zyprexa in the remaining cases.
Zyprexa is indicated in the United States for the short- and long-term treatment of schizophrenia, acute mixed and manic episodes of bipolar I disorder, and maintenance treatment of bipolar disorder. Since Zyprexa(R) was introduced in 1996, it has been prescribed to more than 17 million people worldwide.
Hyperglycemia, in some cases extreme and associated with ketoacidosis or hyperosmolar coma or death, has been reported in patients treated with atypical antipsychotics including Zyprexa.
Lilly advised investors that it anticipates taking at least a $700 million pretax charge in the second quarter of 2005 to cover this settlement, as well as other product liability claims not covered by the settlement.
Zyprexa is Lilly's top-selling drug.
Read Full Story at PR Newswire