Indiana Accident News

Indiana Included in $1.4 Billion Eli Lilly Zyprexa Drug Settlement

Inside Indiana Business reports that Indiana is one of the many states to receive settlement money from the recent Zyprexa drug case in which pharmaceutical giant Eli Lilly & Co. paid out over $1.4 billion in their largest case ever. Indiana Attorney General Greg Zoeller told reporters that Indiana will recover $19.8 million, with $7.5 million going toward the related Medicaid loss and $12.3 million headed toward the federal government.

The lawsuit involved misleading, off-label, and improper marketing of Zyprexa.  The drug, which has been approved by the Food And Drug Administration (FDA) for use as an anti-psychotic, was being peddled by the drug company for use in nursing home patients who had not been formally diagnosed as having bipolar disorder or schizophrenia. The promotion of unapproved uses of drugs is illegal, and Eli Lily faced a combination of civil and criminal charges.

Since the end of 2005, the drug company has been promoting the drug in a much broader light than was legal. This advertising campaign resulted in both physicians and psychiatrists, who then used the drug to treat nausea, gambling addictions, depression, anxiety, insomnia, and irritability in children, teens, adults, and the elderly.

"By reaching a settlement, we are able to reimburse the state Medicaid program for the estimated sales of Zyprexa," said Zoeller. "We appreciate that Eli Lilly has agreed to eliminate illegal off-label promotions and to take accountability for the sales to the recipients of our Medicaid program resulting from off-label promotion."

As part of the settlement, and in addition to the monetary compensation, Eli Lily agreed to plead guilty to violating the Federal Food, Drug, and Cosmetic Act. Furthermore, the $1.4 billion payment is broken into a $800 million fee for resolving off-label marketing allegations and a $615 million criminal fine for the offense.

In addition to the fines and guilty plea, Eli Lily will also agree to an official Corporate Integrity policy that involves close inspections and reviews of future marketing plans by the US Department of Health and Human Services.

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