Eli Lilly has been hit by a subpoena from Florida’s attorney general’s office seeking documents relating to its sales and marketing practices for the multi-billion dollar schizophrenia drug Zyprexa (olanzapine). Shares had dropped almost 2% during trading on the New York Stock Exchange yesterday.
In a quarterly filing to the US Securities and Exchange Commission, Lilly revealed that it received the subpoena in June from Florida’s Medicaid Fraud Control Unit, and added that it was possible other products could come under the umbrella of the investigation, potentially resulting in criminal charges, fines or penalties.
The company has been named in 230 product liability cases in the USA involving 375 claimants, who claim Zyprexa was responsible for their developing diabetes or related conditions. And in June, a nationwide class action was filed in New York on behalf of consumers and third-party payors, triggering Lilly to set aside a fund of $690 million to settle claims [[10/06/05b]].
Sales of Zyprexa fell 10% during the second quarter of this year to $1.1 billion [[22/07/05b]].