Lilly Gets U.S. Subpoena Related to Zyprexa Marketing
Eli Lilly %26amp; Co. said it received a
subpoena in November from a U.S. grand jury in Pennsylvania
seeking documents related to the marketing of the companys best-
selling drug, the antipsychotic Zyprexa.
The Indianapolis-based company is cooperating in state and
U.S. investigations into its marketing practices, according to an
e-mailed statement from spokeswoman Marni Lemons. The e-mail also
cited “many speculative statements in a New York Times article
yesterday that said the drugmaker may pay more than $1 billion to
settle the investigation by federal and state prosecutors.
The probe centers on marketing and promotional practices
related to the pills sales in the U.S., including communication
with doctors and the way the company paid consulting physicians
and other advisers, Lemons said in a subsequent telephone
interview. Sales of Zyprexa tablets, also used to treat bipolar
disorder, rose 9 percent to $4.76 billion last year, accounting
for about a quarter of Lillys revenue.
The Times, citing “several people involved in the
investigation, said in a story on its Web Site that settlement
discussions with states and the U.S. government are under way,
led by the U.S. Attorneys Office in Philadelphia. A $1 billion
payment may be the largest for breaking laws on how medications
are promoted, the Times wrote.
“We regularly have discussions with the government,
Lemons said. She didnt comment further on the Times article.
`No Confirmation
The U.S. attorneys office in Philadelphia is “not
confirming anything in the New York Times article, said
spokeswoman Patty Hartman. Joseph Trautwein, an assistant U.S.
attorney in the Eastern District of Pennsylvania, declined to
comment in a telephone interview.
In March, 2004, the U.S. attorneys office told Lilly it had
begun a civil investigation of the drugmakers marketing and
promotional practices, according to a Nov. 5 regulatory filing.
In 2005, the office told Lilly it was conducting an inquiry into
rebate agreements involving Zyprexa and other drugs with an
unnamed pharmacy benefit manager, the filing reported.
Lilly has received subpoenas from Florida, California and
Illinois on its marketing and promotional practices, according to
the filing. Thirty states have joined in an effort coordinated by
a committee of attorneys general “under various state consumer
protection laws, the filing said.
The company is cooperating in all of these investigations,
Lilly said.
State Lawsuits
Nine states, including Alaska and Pennsylvania, have sued
Lilly, alleging improper marketing of Zyprexa for off-label uses.
The Alaska case, set to begin trial March 3 in state court in
Anchorage, is seeking a minimum of $200 million in statutory
damages, said attorney Blair Hahn, who represents the state.
Alaska is also asking for $50 million to $75 million for
future medical care costs related to Zyprexa use, Hahn said in an
interview. He said he knew nothing about any company settlement
talks with states or the federal government.
In September, Lilly agreed to settle its claims against a
doctor who leaked secret marketing documents on Zyprexa to the
New York Times. David Egilman, an expert witness for patients
suing Lilly in U.S. court in Brooklyn, New York, agreed to pay
$100,000 to the drugmaker. Lilly said Egilman violated an order
to keep the documents secret.
Earlier this month, Lilly settled 950 claims related to
Zyprexa on allegations it causes diabetes and other illnesses.
The company has said it faces an additional 1,100 cases.
