Zyprexa Lawsuits Could Cost Eli Lilly $5 Billion
At the end of the day, Zyprexa lawsuits against Eli Lilly, over illegal marketing and their failure to warn about potentially life-threatening side effects, could cost the pharmaceutical company nearly $5 billion. However, with the drug still on the market, continuing to generate worldwide sales of over $4 billion every year, was this just a small cost of doing business?
Zyprexa (olanzapine), was approved by the FDA in 1996 for treatment of schizophrenia. The drug has also been widely used off-label for non-approved purposes, like treatment of anxiety, obsessive compulsive disorders and autism, making it a top seller for Eli Lilly.
In recent years, Eli Lilly has faced Zyprexa lawsuits filed by over 30,000 users who suffered diabetes and other injuries from the drug; claims from states, insurance companies and labor unions seeking reimbursement for the costs of the prescription and medical expenses for people who developed diabetes; and they have faced federal criminal investigations into their aggressive marketing of the drug for uses that were not approved by the FDA.
Lilly has been accused of withholding known information about Zyprexa diabetes side effects and encouraging off-label sales, which generated billions in profits, but violated state and federal laws.
Zyprexa settlements have already been reached that include payments of $1.2 billion for claims filed by consumers who were injured and another $1.42 billion to settle state and federal claims over their illegal sales practices.
In addition to the settled cases, at least 12 state Zyprexa lawsuits are still pending against Lilly claiming damages of another nearly $7 billion, which analysts estimate could cost the drug maker another $2 to $3 billion to settle, bringing the total cost of the Zyprexa litigation to around $5 billion.
While payments of $5 billion certainly hurt even a company the size of Eli Lilly & Co., when you consider the huge profits they have generated off of this dangerous drug and the money they will continue to earn in the future based on the popularity of the drug, you have to ask whether some bean counter somewhere inside the company is smiling about the results of their “strategy” to withhold risk information and fraudulently market the drug.
