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North Carolina Among 32 States to Receive $62 Million Settlement from Drug Manufacturer Eli Lilly For Marketing Zyprexa for Off-Label Uses

Drugmaker Eli Lilly and Co. will pay $62 million to 32 US States, including North Carolina, to resolve charges that it improperly marketed Zyprexa, an antipsychotic drug. This record settlement comes a few months after North Carolina and other states reached a $58 million settlement with Merck over allegations that the drugmaker downplayed the health risks associated with the use of painkiller Vioxx in ads.

According to North Carolina Attorney General Roy Cooper and other state attorney generals, Eli Lilly allegedly applied deceptive and unfair marketing practices when it marketed Zyprexa for purposes that the US Food and Drug Administration had not approved. The states are also accusing the drugmaker of neglecting to properly disclose the antipsychotic drug?s side effects to health care providers.

Eli Lilly has agreed to change the way it markets Zyprexa and will no longer market it for off-label uses, which are not FDA-approved. The drugmaker must also offer objective, accurate, and scientifically supported responses to doctor queries about off-label uses and only give Zyprexa samples to physicians whose practices are in line with uses of the drug that are FDA-approved.

From the $62 million settlement, North Carolina will receive $1.8 million.

Zyprexa
This is the brand name for olanzapine, which is used to treat schizophrenia and bipolar disorder. Seven years ago, Eli Lilly began marketing Zyprexa as a drug that could be used by children for certain symptoms (rather than conditions that had been diagnosed), as well as by elderly adults suffering from dementia. Although physicians can prescribe drugs to patients for uses that are not FDA-approved, drug companies are not allowed to market medications for off-label purposes.

Dangerous Drug Litigation
If a person uses a drug for a purpose marketed by the pharmaceutical company that is not approved by the FDA and he or she is injured or dies, the drug manufacturer may be held liable in civil court for personal injury or wrongful death. Unfortunately, there have been cases where a drugmaker has released a drug into the marketplace while knowing it was potentially dangerous and marketed the medication for profit.

Eli Lilly settles Zyprexa inquiries in 32 states, AP, October 7, 2008

North Carolina to get $1.8M in Eli Lilly settlement, Triangle Business Journal, October 7, 2008

Merck agrees to settlement over Vioxx ad claims, The Bismark Tribune, May 21, 2008

Related Web Resources:

Eli Lilly and Company

Zyprexa

North Carolina Attorney General Roy Cooper

Full post as published by North Carolina Injury Lawyer Blog on October 16, 2008 (boomark / email).