Early in January Eli Lilly & Co. entered into an agreement with the U.S. attorney's office of the Eastern District of Pennsylvania and 30 states to pay $1.4 billion to settle charges that it illegally marketed its anti-psychotic drug Zyprexa for off-label uses. Zyprexa is one of the biggest-selling drugs in the world, with billions of dollars in sales. The settlement is believed to be the largest health care fraud settlement in history. The marketing campaign known as "Viva Zyprexa" promoted the anti-psychotic drug for unapproved uses such as the treatment of depression, anxiety, irritability, disrupted sleep, nausea and gambling addiction. Eli Lilly also provided payments and benefits to physicians and health care professions that prescribed Zyprexa. As a result of the campaign, Zyprexa was prescribed for children, adolescents, and dementia patients for uses that were unapproved and ran afoul of Medicaid reimbursement programs.
Late in January the company also pled guilty to a misdemeanor for promoting Zyprexa to the elderly as a treatment for Alzheimer's even though the drug isn't approved by the FDA for such uses. As part of the guilty plea, Lilly must also pay a fine and forfeiture of $615 million, $438 million to the federal government, and $362 million to the settling states.
Thousands of plaintiffs have also brought individual suits against Eli Lilly, many accusing the company of failing to provide adequate warnings that the drug may cause weight gain and diabetes.
In addition Lilly has been sued by insurance companies and other organizations for breaking marketing laws and overcharging for the drugs.
[1] Daly, E. "Lilly Officially Pleads Guilty In Zyprexa Debacle," Law360 (January 30, 2009).
[2] USA v. Eli Lilly & Co., Case No. 2:09-cr-00020,United States District Court for the Eastern District of Pennsylvania.
Late in January the company also pled guilty to a misdemeanor for promoting Zyprexa to the elderly as a treatment for Alzheimer's even though the drug isn't approved by the FDA for such uses. As part of the guilty plea, Lilly must also pay a fine and forfeiture of $615 million, $438 million to the federal government, and $362 million to the settling states.
Thousands of plaintiffs have also brought individual suits against Eli Lilly, many accusing the company of failing to provide adequate warnings that the drug may cause weight gain and diabetes.
In addition Lilly has been sued by insurance companies and other organizations for breaking marketing laws and overcharging for the drugs.
[1] Daly, E. "Lilly Officially Pleads Guilty In Zyprexa Debacle," Law360 (January 30, 2009).
[2] USA v. Eli Lilly & Co., Case No. 2:09-cr-00020,United States District Court for the Eastern District of Pennsylvania.
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