Lilly Earnings: Another $693M Burned in Zyprexa Furnace

Last Updated Jan 29, 2010 9:09 AM EST

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%
Lilly management will not be losing too much sleep over this news -- the drug continues to pay for itself. Its sales rose 19 percent in the fourth quarter to $1.4 billion.