Lilly nearing $1.4B Zyprexa settlement-WEB ONLY

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Eli Lilly and Co. could agree as soon as Thursday to pay $1.4 billion to settle criminal and civil charges related to its marketing of antipsychotic drug Zyprexa, according to a story today in the New York Times.

The Times cited unnamed sources involved in Lilly’s negotiations with federal Justice Department officials.

Indianapolis-based Lilly already set aside $1.4 billion in October in anticipation of a settlement. A Lilly spokeswoman declined to comment to the Times on the pending settlement.

The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Patricia Hartman, a spokeswoman for the office, declined to comment to the Times.

The attorney’s investigation is based on whistleblower accusations that Lilly tried to persuade doctors to prescribe Zyprexa to children and the elderly, two groups for which Zyprexa was not approved as a treatment.

Zyprexa is Lilly’s bestselling drug. In 2007, it racked up worldwide sales of $4.8 billion.

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