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Drug Manufacturer Hopes to End Investigation

Lilly, the manufacturer of the prescription drug Zyprexa is in the end stages of trying to settle a criminal investigation regarding the marketing of the drug.  The disclosure comes just two weeks after Lilly settled an 18-month probe with 32 states, which contended Lilly violated consumer protection laws by urging docs to prescribe Zyprexa to patients who did not need the drug.  See http://www.pharmalot.com/2008/10/lilly-to-take-14-billion-charge-for-zyprexa-probe/

"The government's investigation...has been ongoing for five years and we now have a heightened sense of responsibility to all our stakeholders to intensify efforts to resolve these issues," Robert Armitage, Lilly's senior vp and general counsel, says in a statement. 

 However, 11 states, including South Carolina have filed law suits against the manufacturer instead of participating in the joint federal investigation.  In its statement, Lilly says that, if the ongoing discussions are successfully concluded, the drugmaker expects that they would settle the Zyprexa-related federal claims, as well as similar Medicaid-related claims of states participating in the settlement. Separately, Lilly paid $15 million to settle a lawsuit last March filed by the state of Alaska.

        

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