Lilly Earnings: Another $693M Burned in Zyprexa Furnace
Eli Lilly (LLY) spent $692.7 million on costs related to Zyprexa litigation in 2009, according to its Q4 2009 earnings report. The company has burned an average of 6 percent of its revenues since 2006 fighting and settling lawsuits which have alleged the company failed to warn patients of the drug's weight gain and diabetes side effects. Lilly has spent an astonishing $3.9 billion on litigation resulting from Zyprexa, in total.
This will be regarded as "good" news by Wall Street, because Zyprexa costs are less than half those expended the year before. In 2008, Lilly blew $1.9 billion on the same costs.
Here's an updated table of what Zyprexa has cost Lilly over the last three years:
Period charge % of Revs
- 4q06 945.2 22%
- 1q07 123 3%
- 2q07 0.00 0%
- 3q07 81.3 2%
- 4q07 98.2 2%
- 1q08 145.7 3%
- 2q08 88.9 2%
- 3q08 1,659.40 32%
- 4q08 80.0 2%
- FY09 692.7 3%
- TOTAL 3,914.4 6%
- Related:
- Lilly PowerPoint: "Execute the *%#&! Out of Them"; a Photo Gallery of Dodgy Drug Sales Advice
- Lilly Urged Zyprexa Use Without Proper Diagnosis
- Lilly Plans 5,500 Layoffs as Company Heads Over Zyprexa Patent Cliff
- Lilly's Zyprexa Costs Reach $3.3B; 6% of Revenues Since '06
- Suit: Lilly Touted Zyprexa for Alzheimer's Knowing It Was Ineffective; Sales Reps Had $10K Off-Label Promo Budgets
- Eli Lilly Promoted Zyprexa for Patients Who Were Badly Dressed