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Eli Lilly pleads guilty and pays $1.415bn
16 Jan 2009
Regulatory Affairs
Eli Lilly is to pay $1.415 billion (£0.948 billion) after pleading guilty to promoting a drug to groups not approved by the US Food and Drug Administration (FDA).
The company will pay a fine of $515 million concerning the Zyprexa dementia drug and up to $800 million in a civil settlement with the federal government and states.
Eli Lilly's fine is the largest ever seen for a pharmaceutical firm imposed by a US criminal prosecution.
It pleaded guilty to encouraging doctors to market the drug to the elderly and children, age groups which the FDA did not approve the medication for.
Gregory Katsas, assistant attorney general for the civil division, described the case as a "serious crime".
"This settlement demonstrates the department's ongoing diligence in prosecuting cases involving violations of the Food, Drug and Cosmetic Act, and recovering taxpayer dollars used to pay for drugs sold as a result of off-label marketing campaigns," he adds.
Yesterday, the New York Times reported a source had told it that Eli Lilly was planning on settling in the case.
Danny Haszard says:
16 January 2009 at 05:03 PM