Eli Lilly Pays Out Over Illegal Drug Marketing

7 April 2010 (Last Updated April 7th, 2010 18:30)

The US State of Louisiana will receive $20m in a settlement with pharmaceutical company Eli Lilly and Co. over illegal marketing of the anti-psychotic drug Zyprexa. Eli Lilly previously paid a $1.4bn settlement to the federal government in January 2009 and has reached settlement terms w

The US State of Louisiana will receive $20m in a settlement with pharmaceutical company Eli Lilly and Co. over illegal marketing of the anti-psychotic drug Zyprexa.

Eli Lilly previously paid a $1.4bn settlement to the federal government in January 2009 and has reached settlement terms with a further 10 states.

The company was found guilty of illegally marketing the drug for uses other than those approved by federal regulators.

Zyprexa has been approved to treat psychological problems such as schizophrenia and bipolar disorders in adults only, but has also been marketed for use with children and the elderly to treat depression, attention deficit disorder, sleeping problems, anger and stabilising moods.

According to the state around $17m will go into its general fund and around $3m will go into its Medicaid fund to treat health problems related to unapproved use of the drug.