Lilly settles Zyprexa Alaska case for $15M

Following a law suit by the US State of Alaska claiming the costs to Medicaid of covering health problems related to US drug major Eli Lilly's Zyprexa (olanzapine), used in the treatment of schizophrenia and bipolar disorder, the company has agreed a settlement, while also stressing that the deal involves no admission of wrongdoing on Lilly's part.

The law suit, which was originally filed in March 2006, claimed the State and health care providers were insufficiently warned about possible side effects relating to weight gain, high blood sugar and diabetes, causing harm to Alaska's Medicaid recipients and increased costs to the State. The law suit requested that Lilly pay for those costs and civil penalties under the Alaska Unfair Trade Practices and Consumer Protection Act.

The settlement will include payment by Lilly of $15.0 million plus a term that will ensure that Alaska is treated as favorably as any other US state that may settle with the drugmaker in the future over similar claims.