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www.fdanews.com/articles/73508-lilly-to-pay-690-million-to-settle-zyprexa-suit

LILLY TO PAY $690 MILLION TO SETTLE ZYPREXA SUIT

June 20, 2005

Eli Lilly has reached an agreement in principle to settle approximately 8,000, or 75 percent, of the legal claims filed against it over its antipsychotic drug Zyprexa, which has been linked to increased risk of diabetes-related health problems.

As part of the settlement, Lilly has agreed to establish a fund not to exceed $690 million for plaintiffs who agree to settle their claims with the company. The majority of the lawsuits filed over Zyprexa (olanzapine) allege the drug caused diabetes or diabetes-related health problems, such as weight gain.

"While we believe the claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication, and their doctors," Lilly Chairman, President and CEO Sidney Taurel said. "We wanted to reduce significant uncertainties involved in litigating such complex cases. This settlement will enable Lilly to focus first and foremost on addressing unmet medical needs through research, educational programs and partnerships with doctors and patients."

Concerns that the newer generation of antipsychotic drugs, commonly known as atypical antipsychotics, cause weight gain surfaced roughly five years ago when doctors started noticing that some patients taking the medications were experiencing pronounced weight gain and increased cholesterol levels. In late 2003, the FDA ordered all manufacturers of atypical antipsychotics to include information about hyperglycemia and diabetes on their product labeling.