October 07, 2008
Lilly will pay $62 million to 32 states investigating the company over its marketing of Zyprexa, an antipsychotic drug indicated for schizophrenia and some forms of bipolar disorder. Eleven other states – and the federal government – will continue to investigate Zyprexa promotions, and may cost the company more money in the future. The company is accused of marketing the drug off-label, for dementia and milder forms of bipolar disorder that have not been approved by FDA.
AtheroGenics, an Alpharetta, GA–based pharmaceutical company, filed for Chapter 11 bankruptcy on September 15 in the US Bankruptcy Court for the Northern District of Georgia in Atlanta, due to a substantial debt burden. AtheroGenics expects to sell the company and/or its key assets. AtheroGenics focused on the treatment of chronic inflammatory diseases including diabetes and coronary heart disease.