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Lilly fine could reach $1B

Pharma Compliance Alert, February 6, 2008

Eli Lilly could set a new record for the largest fine ever paid by a pharmaceutical company depending on the outcome of negotiations with federal officials, according to a New York Times article.

Lilly and the government are currently working out a deal to settle civil and criminal allegations relating to the promotion of Lilly's antipsychotic drug Zyprexa.

Zyprexa, which has serious side effects, is approved only to treat schizophrenia and severe bipolar disorder. According to the Times article, Lilly encouraged doctors to prescribe Zyprexa to people with age-related dementia and mild bipolar disorder who had previously been diagnosed with depression.

Lilly may plead guilty to a misdemeanor as part of the settlement, according to the Times article, but would be allowed to continuing selling Zyprexa to Medicare and Medicaid patients.

Lilly already paid $1.2 billion to settle 30,000 lawsuits from people who claim they developed diabetes or other diseases after taking Zyprexa.

In addition to the fine, Lilly faces a lawsuit from two shareholders who claim the company disregarded the risks of alleged off-label promotions, according to a separate article in The New York Times.

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