Eli Lilly Hit with Record $1.415B Fine for Zyprexa Off-label Push

Pharma giant Eli Lilly & Company has been slapped with a staggering $1.415 billion fine for pushing its antipsychotic drug Zyprexa off-label, according to federal prosecutors.

The massive penalty includes a record-breaking criminal fine of $515 million and up to $800 million in civil settlements with the feds and several states.

Eli Lilly admitted guilt in a plea agreement for promoting Zyprexa beyond its approved uses by the FDA, including treatments for dementia and Alzheimer’s disease. This illegal marketing led to false claims being submitted to federal insurance programs like Medicaid and TRICARE.

Assistant Attorney General Gregory G. Katsas and Acting U.S. Attorney Laurie Magid announced the charges, pointing out that Eli Lilly’s management trained sales staff to ignore laws and push the drug for unapproved purposes.

The FDA had originally approved Zyprexa for treating psychotic disorders, bipolar disorder, and schizophrenia. The company faces severe scrutiny for its illegal tactics, which include creating marketing materials designed to promote off-label use.

Eli Lilly will also forfeit $100 million in assets as part of the plea agreement. This landmark fine sends a strong message about the consequences of illegal drug promotion, underscoring the feds’ commitment to protect patients and the integrity of the healthcare system.

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