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Zyprexa Settlement Costs Lilly $1.4 Billion

A settlement has finally been reached between drug maker Eli Lilly and the Department of Justice, over allegations of overzealous marketing of its antipsychotic medication Zyprexa.

Lilly will pay a reported $1.4 billion to settle the claims, and plead guilty to a misdemeanour violation of the Food, Drug and Cosmetic Act. The settlement of criminal charges will use approximately $615 million of the settlement monies.

The allegations against Lilly included the drug company persuading physicians to prescribe Zyprexa to children and elderly patients, regardless of the fact that the medication does not have an FDA indication for these patient populations, and knowing that the medication can be harmful to these age groups.

Zyprexa has been shown to increase the risk of death in elderly patients with dementia, and to cause excessive weight gain in adults.

Media reports call this settlement a 'record among whistleblower cases'.

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Last updated on Jan-15-09