Thursday, January 31, 2008
One way to share the wealth
Eli Lilly has developed a clever new way to spread the profits of its biggest seller as well as develop new ways to make profits.
Eli Lilly and federal prosecutors are discussing a settlement of a civil and criminal investigation into the company’s marketing of the antipsychotic drug Zyprexa that could result in Lilly’s paying more than $1 billion to federal and state governments.All they did was market a drug with serious side effects beyond the FDA approved limits for its use.
If a deal is reached, the fine would be the largest ever paid by a drug company for breaking the federal laws that govern how drug makers can promote their medicines.
Zyprexa has serious side effects and is approved only to treat people with schizophrenia and severe bipolar disorder. But documents from Eli Lilly show that from 2000 to 2003 the company encouraged doctors to prescribe Zyprexa to people with age-related dementia, as well as people with mild bipolar disorder who had previously had a diagnosis of depression.Well outside any cost/benefit consideration for the patient. But Lilly sold $4.8 Billion of this drug last year and the settlement won't stop continued sales to Medicare so it was probably worth it. Or was it?
The fine would be in addition to $1.2 billion that Lilly has already paid to settle 30,000 lawsuits from people who claim that Zyprexa caused them to develop diabetes or other diseases. Zyprexa can cause severe weight gain in many patients and has been linked to diabetes by the American Diabetes Association.OK, so now we are up to $2 Billion+ so Lilly does what any self respecting company does.
While Zyprexa prescriptions are falling, its dollar volume of sales is rising because Lilly has raised Zyprexa’s price about 40 percent since 2003.Which is just as well as the suit by the state of Alaska is still pending.
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