January 15, 2009

    LANSING -  Attorney General Mike Cox today announced that Michigan will receive $26.4 million from a $1.4 billion nationwide settlement with Eli Lilly and Company that resulted from its improper marketing and payment incentives for the use of Zyprexa, an anti-psychotic drug intended for use in schizophrenia and bipolar disorders.  The settlement includes $800 million in damages and penalties to compensate state Medicaid and federal healthcare programs for harm suffered as a result of this conduct, and a $615 million federal criminal penalty.  

    "We will not tolerate actions that put people's health at risk," said Cox.  "These funds will go to the state Medicaid program, which hundreds of thousands of Michigan residents depend on for health care."

    Between 1999 and 2005, Eli Lilly promoted the sale and use of Zyprexa through a marketing campaign called "Viva Zyprexa" for certain uses which the Food and Drug Administration had not approved.  The marketing activities promoted Zyprexa not only to psychiatrists, but also to primary care physicians, for such unapproved uses as the treatment of depression, anxiety, irritability, disrupted sleep, nausea and gambling addiction.  Eli Lilly also provided compensation and other things of value to health care professionals.  As a result, Michigan's Medicaid program funded use of the drug for unapproved illnesses.

    The settlement does not release Eli Lilly from liability for adverse health effects suffered by Medicaid recipients as a result of taking Zyprexa.

    Since taking office in 2003, Cox's office has recovered more than $137.7 million in Medicaid funds.  It is estimated that one in four Michigan citizens is currently uninsured or on Medicaid.
 

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