Eli Lilly made false claims of Zyprexa effectiveness

Indianopolis-based drugmaker Eli Lilly & Co marketed its atypical antipsychotic medication, Zyprexa for an unapproved, off-label use – in the treatment of dementia in elderly patients, with the full knowledge of its ineffectiveness. At least seven studies conducted by the company had shown that the drug was ineffective in the treatment of dementia.

The studies also showed that the use of the drug led to 'significantly' more deaths in patients taking the drug that patients taking placebo pills.
 
Eli Lilly is currently embroiled in a number of claims brought by pension plans and health care insurance companies seeking to recover money spent on purchasing Zyprexa for their customers. The company has settled numerous Zyprexa related cases paying up approximately $2.62 billion.

Included in this is a $615 million fine for the federal charge of marketing the drug for off-label uses.

According to the company it had ceased the off-label marketing of Zyprexa for dementia in elderly patients in 2001, but parties that have brought charges claim the company continued to promote Zyprexa to physicians treating elderly patients beyond that date. They cite the company's internal emails and documents to corroborate their contention.

The plaintiffs have cited documents including a 2002 business plan aimed at increasing prescriptions in off-label use. They also point to notes from Lilly sales representatives through 2003 that show that the company continued to press doctors to prescribe Zprexa for treatment of mood symptom, irritability and insomnia.

Insurers and other third-party payers are demanding that Lilly pay as much as $6.8 billion in damages for failure to inform patients of the health risks associated with the use of the drug including excessive weight gain and the risk of contracting diabetes and unapproved use of the drug to push profits.