Boston, MA 04/08/2014 (wallstreetpr) – Eli Lilly &Company (NYSE:LLY) with its Japanese Counterpart Takeda Pharmaceutical Co, have been ordered to pay a total of $9 billion in damages by a Louisiana jury. The two companies were found liable of not disclosing the cancer risks associated with their diabetes pill Actos, which some patients were already using.
Japan based Takeda has confirmed it has been ordered to pay a total of $6 billion in punitive damage with Eli Lilly which was responsible for promoting the drug instructed to pay a total of $ 3 billion.
Takeda failed to inform Users about Drugs Side effects
Plaintiffs in the case had been awarded compensatory charges amounting to $1.5 million. Takeda had been accused of failing to inform users about the side effects associated with the modifications. Actos has been cited as the main reason behind increased risk of bladder cancer in some of the patients that were using it.
According to data compiled by one law firm, Eli Lilly &Company (NYSE:LLY) and Takeda are not yet out of the loop as they are inline to face another 2,700 Actos lawsuits that have already been filed. The legal fight had turned on whether Actos which was used to treat diabetes-2 caused cancer of the bladder.
Takeda Planning to appeal
The company’s through their spokesman maintain that the evidence before the court does not provide any link between the medication and the cancer. Takeda has vehemently rejected the courts verdict and plan to address the outcome through all available means. This essentially means that the two companies are ready for a major showdown in terms of post motions and appeal.
Eli Lilly &Company (NYSE:LLY) could be out of the hook as it expects Takeda to repay it for U.S litigation losses and expenses as indemnified in the partnership agreement that the two companies signed. Eli Lilly &Company (NYSE:LLY) maintains that it was only responsible for selling the drug and did not develop it.
The court ruling comes at the back of the FDA back in 2011, publishing safety update on Actos consequently stating that the drug was responsible for 40% increase in cancer of the bladder. FDA had requested a cancer risk label to be added on the medications warning label.
