« Courts - "Does the exclusionary rule, which requires the suppression of some evidence produced by police misconduct, still make sense? " | Main | Courts - "Typos and Errors Lead to Slashed Fees for Attorney" »

Wednesday, October 08, 2008

Courts - "Eli Lilly Settles Zyprexa Inquiries in 32 States for $62 Million"

Updating earlier ILB Lilly Zyprexa entries, Tom Murphy and Marley Seaman of the Associated Press report today in a story that begins:

Drugmaker Eli Lilly & Co. cleared another legal cloud hanging over its top-selling drug Zyprexa when it announced a $62 million settlement Tuesday with several states, including Illinois, but several other storms are still brewing for the anti-psychotic medication.

Lilly agreed to pay 32 states and Washington, D.C., to resolve an investigation into the company's marketing practices.

Attorneys general from several states had accused Lilly of marketing Zyprexa for off-label uses and inadequately disclosing the drug's side effects to health care providers, the same claims made in reams of other litigation against the drugmaker.

Lilly was accused of marketing the drug for pediatric care, for use at a high dose and for the treatment of dementia, according to a statement from the Indiana attorney general's office. Doctors are free to prescribe drugs for uses not approved by the FDA, but drug companies cannot market them for those situations.

The company did not admit wrongdoing in the settlement.

Tuesday's settlement will be divided among the states and the district based on population, said Greg Zoeller, Indiana's chief deputy attorney general. Indiana, for instance, will receive $1.6 million.

Lilly also agreed to several mandates that will last until 2014, well beyond Zyprexa's patent expiration in 2011. The company agreed to avoid making false, misleading or deceptive claims about the drug and not to promote it outside FDA-approved uses.

The drugmaker also agreed to give its medical staff, not the marketing staff, ultimate responsibility for approving the content in "all medical letters and medical references regarding Zyprexa," according to the Indiana attorney general's statement.

Jeff Swiatek of the Indianapolis Star had this story yesterday, including:
The money will be split among 32 states, with Indiana getting $1.6 million for consumer protection purposes and other activities in the attorney general's office.

Posted by Marcia Oddi on October 8, 2008 11:13 AM
Posted to Courts in general