Eli Lilly settles Zyprexa suit with Alaska for $15 million

INDIANAPOLIS Eli Lilly has agreed to pay the state of Alaska $15 million to settle a lawsuit that the state filed accusing it of concealing possible side effects from its schizophrenia drugs Zyprexa, according to published reports.

The state had accused the company of failing to properly warn the state and health care providers that using the drug could result in weight gain, high blood sugar and diabetes. Under the terms of the settlement, Eli Lilly makes no admission of wrongdoing.

Zyprexa is Lilly’s largest-selling product by far, with sales of $4.76 billion in 2007, including $2.24 billion in the United States.

This is one of many lawsuits the company is facing from states that have accused it of concealing possible side effects and promoting it for unapproved uses, including the treatment of children, which the drug is not approved for.