Posts Tagged ‘settlement’

Eli Lilly to pay $24 million in Utah Attorney General’s Zyprexa lawsuit/AG says “we want their bad conduct to stop”

Thursday, November 12th, 2009

Geoff Leisik
Deseret News
November 11, 2009

Pharmaceutical giant Eli Lilly and Co. has agreed to pay $24 million to settle a lawsuit filed by the Utah Attorney General’s Office.

Attorney General Mark Shurtleff sued the company after a nearly four-year investigation revealed that Lilly concealed its knowledge of significant weight gain and obesity associated with the anti-psychotic medication Zyprexa. Investigators also showed that Lilly’s sales representatives illegally promoted the drug for uses not approved by the U.S. Food and Drug Administration.

“We’re not just asking them for money. We want their bad conduct to stop,” Shurtleff said Wednesday while announcing the settlement.

“As part of the settlement agreement, there are corporate integrity responsibilities and remedial provisions that will continue to be monitored by the court to stop (Lilly’s) harmful behavior.”

Zyprexa is approved for the treatment of schizophrenia and certain types of bipolar disorder in adults. But authorities say that in 1999, Lilly’s marketing arm that focuses on doctors who treat the elderly began encouraging physicians to prescribe the drug for dementia, Alzheimer’s disease, agitation, aggression, hostility, depression and generalized sleep disorder without prior FDA approval. Lilly also trained its sales teams to avoid discussions with health-care professionals about the weight gain side effect, investigators said.

Read entire article: http://www.deseretnews.com/article/705343716/Firm-to-pay-Utah-24M-in-settlement.html

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$112 million settlement: charged with kickbacks from drug company & recommending docs prescribe antipsychotic drug Risperdal

Wednesday, November 4th, 2009

Reuters
November 3, 2009

Omnicare Inc, the largest U.S. provider of pharmacy services to nursing homes, will pay $98 million and Teva subsidiary IVAX Pharmaceuticals will pay $14 million to settle allegations of kickbacks, the U.S. Department of Justice said on Tuesday.

The department said Omnicare both solicited and paid kickbacks.

Omnicare allegedly asked IVAX to pay $8 million in exchange for agreeing to purchase $50 million in IVAX drugs, the DOJ said.

It also accused Omnicare of soliciting kickbacks from Johnson & Johnson in exchange for recommending that physicians prescribe the antipsychotic drug Risperdal to nursing home patients.

“J&J’s kickbacks to Omnicare took multiple forms, including rebates that were conditioned on Omnicare engaging in an ‘Active Intervention Program’ for Risperdal and payments disguised as data purchase fees, educational grants, and fees to attend Omnicare meetings,” the Justice Department said.

Read entire article: http://www.reuters.com/article/healthcareSector/idUSN0350746820091103

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Eli Lilly’ s confidential settlement with seven states over its antipsychotic drug Zyprexa

Thursday, September 24th, 2009

Bob Van Voris, Margaret Cronin Fisk and Jef Feeley
Bloomberg.com
September 21, 2009

Eli Lilly & Co. agreed to settle, on confidential terms, lawsuits filed by seven states alleging the company improperly marketed its antipsychotic drug Zyprexa, a court-appointed official said.

“All of the states have essentially settled for the same” non-monetary arrangements, said Michael Rozen, special master appointed by the court to help settlement negotiations. The money terms, which weren’t disclosed, “have fallen roughly in line,” he said at a hearing today in federal court in Brooklyn, New York.

Lawyers told U.S. District Judge Jack B. Weinstein, who is overseeing the cases, that finishing the settlements may be delayed while the parties determine how much money the U.S. government plans to claim in compensation for federal dollars spent on Zyprexa through state Medicaid programs.

If completed and approved in court, the settlements would leave four suits filed by states pending against Lilly.

Read entire article: http://www.bloomberg.com/apps/news?pid=20601103&sid=aUgLzDmvzVK0

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FiercePharma: Drugmaker Eli Lilly nears another settlement over its antipsychotic drug Zyprexa

Friday, July 24th, 2009

Tracy Stanton
Fierce Pharma
July 23, 2009

Eli Lilly is close to settling another slate of Zyprexa marketing cases. According to the company’s quarterly report, it’s in “advanced discussions” with attorneys general investigating the company for off-label promotions of the antipsychotic drug. Lilly took a $105 million charge against earnings in anticipation of a settlement, the Wall Street Journal Health Blog reports.

This settlement would be the latest in a series. Lilly’s marketing practices on Zyprexa have drawn scrutiny from states and the feds. Some of those probes were settled earlier this year when Lilly agreed to pay $1.42 billion to the U.S. Justice Department and a number of states. Previously, the company had pledged to pay $1.2 billion to plaintiffs in liability suits, and another $77 million or so to 33 states, including Alaska.

Read entire article:  http://www.fiercepharma.com/story/lilly-nears-another-zyprexa-settlement/2009-07-23

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