Boston, MA 08/29/2014 (wallstreetpr) – Pharmaceutical companies Takeda Pharmaceutical Co Ltd (ADR) (OTCMKTS:TKPYY) and Eli Lilly and Co (NYSE:LLY) have lost their way in bringing back the case in its favor in a $9 billion damage award for covering up the cancer risks related with their diabetes drug, Actos.
Punitive Damages
A U.S. District Court Judge Rebecca Doherty has considered the evidence provided by the plaintiffs and came to the conclusion that the labels of Actos had failed to provide sufficient warning on the potential risk of cancer, Reuters reported. The case involved $9 billion punitive damages.
The ruling by the U.S. judge had undoubtedly been a big setback for Takeda Pharmaceutical Co Ltd (ADR) (OTCMKTS:TKPYY) than Eli Lilly. However, it provides Takeda the option of a retrial or settles with a reduced verdict, for which the company had already appealed in April.
Terming the ruling as ‘unfortunate’, a spokesperson had told Reuters that Takeda would continue to expect a favorable outcome on its separate appeal. However, the spokesperson had made it clear that it would fight the case in a court of law rather than settling it with a reduced verdict.
Eli Lilly Role
The company had co-promoted Actos drug between the periods 1999 and 2006. The company would likely to take refuge under its agreement terms with Takeda. An indication had already come from the company to this effect.
Eli Lilly and Co (NYSE:LLY) had earlier disclosed that it would be indemnified by the Japan-based Takeda for any losses or expenses arising out of this litigation. However, the company has not provided any reactions to the court ruling.
Actos Drug
The drug is an oral type 2 diabetes medicine meant to standardize blood sugar levels. The drug has been available in the market since 1999.
Separately, Takeda had disclosed the 10-year epidemiology study findings that indicated no proof of increased bladder cancer risk due to Actos.
In the earlier three trials involving Actos, Takeda Pharmaceutical Co Ltd (ADR) (OTCMKTS:TKPYY) had disclosed that the ruling was in its favor and that the latest U.S. court ruling was the first case to be tried in multidistrict litigation due to 2,900 lawsuits.
