Nevada to get $1.1 million in drug settlement

By Mary Manning

Tuesday, Oct. 7, 2008 | 12:03 p.m.

Nevada will receive $1,132,766 as its share of a $62 million settlement reached with Eli Lilly and Company from alleged improper marketing of the antipsychotic drug Zyprexa, Attorney General Catherine Cortez Masto announced today.

Masto alleged in a complaint that Eli Lilly engaged in unfair and deceptive practices when it marketed Zyprexa for off-label uses and failed to adequately disclose the drug's potential side effects to health care providers.

Following a 1 1/2 year investigation, Eli Lilly agreed with 32 states and the District of Columbia to change how it markets Zyprexa and to stop promoting its "off-label" uses, which are not approved by the Food and Drug Administration.

This is the largest multi-state consumer protection-based drug settlement, following May's $58 million agreement with Merck regarding its product, Vioxx.

"This landmark settlement comes after a lengthy investigation into the conduct of Eli Lilly," Masto said in a statement. "By working together, my fellow attorneys general and I were able to correct the behavior of Eli Lilly. Nevada will benefit greatly from these efforts."

Zyprexa is the brand name for the prescription drug olanzapine. The drug first was marketed for use in adults with schizophrenia in 1996.

Since then, the FDA has approved Zyprexa for treating acute mixed or manic episodes of bipolar I disorder and for maintenance treatment of bipolar disorder.

While the drug may reduce the risks of symptoms associated with antipsychotics, it also can produce side effects including weight gain, hyperglycemia, diabetes, cardiovascular complications, an increased risk of death in elderly patients with dementia and other severe conditions.

Eli Lilly began a marketing campaign in 2001 called "Viva Zyprexa!" As part of that campaign, the company marketed Zyprexa for a number of off-label uses.