Healthy Skepticism Library item: 7378

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Publication type: news

Witkowski W.
Eli Lilly Settling More Zyprexa Suits
Associated Press 2007 Jan 4
http://www.winhs.org/news/news20070104.htm

Full text:

NEW YORK (AP) — The drugmaker Eli Lilly and Co. said Thursday it will settle more liability lawsuits for its anti-psychotic medication Zyprexa for less than $500 million.
The settlement covers more than 18,000 claims that the company did not adequately warn patients taking the medication of a heightened diabetes risk. The Indianapolis-based company did not disclose the exact dollar amount of the new settlement.

In June 2005, Lilly settled more than 8,000 similar claims for a little less than $700 million.

About 1,200 claims would still be outstanding after the latest round of settlements, and the first of those could go to trial this spring.

Lilly spokeswoman Tarra Ryker said in an interview that the new settlement covered more plaintiffs for less money as these particular cases were less viable because a 2003 Zyprexa labeling change addressed a possible diabetes risk.

Lilly will record a settlement charge in the fourth quarter. Analysts surveyed by Thomson Financial expect fourth-quarter earnings per share of 82 cents.

“While we remain confident that these claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication, and their physicians,” Sidney Taurel, chief executive and chairman, said in a statement.

Ryker said the company plans to go to trial and vigorously defend itself against the 1,200 remaining claims beginning in April. Ryker said these claims are not being settled for “various reasons.”

Zyprexa sales accounted for 28 percent of Lilly’s $3.86 billion in revenue in the most recent quarter.

In December, The New York Times reported Lilly has played down safety data on Zyprexa. Lilly countered that the Times was using illegally obtained documents leaked by a plaintiff lawyer and was using internal memos out of context.

Lilly shares slipped 6 cents to $52.19 in early trading Thursday on the New York Stock Exchange. They have traded in a 52-week range of $50.19 to $59.24.