Eli Lilly Takes a $1.4 Billion Charge for Zyprexa Investigation
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The company paid $62 million earlier this month to settle with 32 state attorneys general, but its been clear all along that the federal investigation, led by the U.S. Attorney for the Eastern District of Pennsylvania, is the Big Kahuna. The company has been accused of promoting Zyprexa for patients with dementia and mild bipolar disorder uses the FDA hasnt approved. Companies arent allowed to promote drugs for unapproved uses, but doctors are allowed to prescribe most drugs in any manner they see fit. Settlements of this sort arent uncommon, though theyre usually not for such large amounts of money. But U.S. sales of Zyprexa are over $2 billion, and settlements are often based on how much government programs such as Medicare paid for unapproved uses of a drug. Lilly says its now put in place policies and procedures to prevent inappropriate marketing practices. The charge, which will be recorded against the companys third-quarter earnings, comes to $1.29 a share. Share and save this post: del.icio.us Digg Furl Reddit Help |
Eli Lilly just said its taking a $1.4 billion charge as it prepares to settle a federal investigation into how the company marketed its antipsychotic drug Zyprexa. Yes, thats billion with a b.