Verdict Could Cost Lilly BillionsPosted: Updated:
Eli Lilly and Co. (NYSE: LLY) has been ordered to pay $3 billion in damages as part of a lawsuit that claims a Japanese partner and the Indianapolis-based company concealed cancer risks involving the diabetes treatment Actos. Bloomberg reports a federal jury in Louisiana has ruled Takeda Pharmaceutical Co. will have to pay $6 billion. The publication believes the penalties to Lilly and Takeda, which is Asia's largest pharmaceutical maker, are "almost certain" to be reduced during future proceedings.
Lilly Spokeswoman Candace Johnson told Bloomberg the company plans to "vigorously challenge this outcome" through all legal means.
From 1999-2007, the Indianapolis-headquartered company worked with Takeda to sell and market Actos in the U.S. Even after the partnership concluded, Lilly retained rights to sell it in Canada, Mexico and parts of Europe and Asia.
Bloomberg reports "hundreds" more claims are awaiting the companies in Nevada and Illinois state courts.