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Zyprexa Makers, 32 States Reach $62M Settlement

Eli Lilly and Co., manufacturer of the anti-psychotic medication Zyprexa, has reached a $62 million settlement with 32 states and the District of Columbia, to resolve claims that the company engaged in improper marketing and sales of the drug.

The investigation into Lilly's promotion of Zyprexa was spearheaded by the attorneys general of Illinois and Oregon, who alleged that Eli Lilly and Co. made unsubstantiated claims about Zyprexa's benefits and promoted the medication for unapproved uses, including the treatment of dementia in elderly patients. The Illinois Attorney General calls the $62 million agreement "the largest ever multi-state pharmaceutical consumer protection settlement." In a Press Release issued on Tuesday, Eli Lilly and Co. announced that the $62 million will be divided among the settling states, and that the company will undertake "certain commitments" involving "the company's promotional practices, dissemination of medical information, funding of continuing medical education and grants related to Zyprexa, and continued disclosure of Zyprexa clinical trials and their results." 11 other states that have filed Zyprexa-related lawsuits against Lilly are not covered by Tuesday's settlement agreement. According to Reuters, Zyprexa is Lilly's top-selling product, bringing in $4.76 billion in sales last year alone.

• Illinois Attorney General's Press Release on Zyprexa Settlement | Oregon DOJ Press Release
• Eli Lilly and Co. Press Release on Zyprexa Settlement
• Reuters: Eli Lilly to Pay $62 Million in Zyprexa Settlement
• N.Y. Times: 33 States to Get $62 Million in Zyprexa Case Settlement
• Zyprexa Patient Information Sheet (U.S. Food and Drug Administration)
• Zyprexa Health and Legal Information (FindLaw)

Full post as published by FindLaw's Common Law on October 08, 2008 (boomark / email).