State, Eli Lilly settle for $5.1 million

State Attorney General Jack Conway announced a $5.1 million settlement with pharmaceutical company Eli Lilly on Tuesday, saying the company had improperly marketed an anti-psychotic drug.

The state had accused Eli Lilly of marketing Zyprexa for uses not approved by the U.S. Food and Drug Administration, including as treatment for depression, anxiety, disrupted sleep and gambling addiction, Conway's office said in a statement.

The state also alleged that Eli Lilly persuaded physicians to prescribe the drug for pediatric use, as well as for dementia patients in long-term care centers, often at the expense of Medicaid.

The deal, under which Eli Lilly admits no violation of laws, will require the company to provide samples of Zyprexa only to health care providers whose practices are consistent with its FDA-approved uses. For six years, Eli Lilly also must disclose payments of more than $100 to promotional speakers and consultants and must register all studies and post the results of those studies, the AG's office said.

Of the $5.1 million paid by Eli Lilly, the state Medicaid program will receive $3.8 million, and the remainder after litigation costs will go to the state general fund.