Eli Lilly urged to settle Zyprexa lawsuit

A federal judge in New York urged Eli Lilly & Co. to settle a multibillion-dollar lawsuit filed by insurers, unions and others who claim the pharmaceutical giant overpriced Zyprexa and exaggerated its usefulness.

In a 290-page discussion draft, U.S. District Judge Jack Weinstein said he was prepared to grant class-action status for the lawsuit brought by Mid-West National Life Insurance Co. of Tennessee and others. He set a hearing on the proposed order for July 31.

The claims center on alleged overpricing and allegations that the Indianapolis drug maker marketed the anti-psychotic drug for unapproved off-label uses.

“There is evidence that off-label use of Zyprexa was excessive and may have been encouraged by Lilly,” Weinstein wrote.

He made it clear he believed there was enough evidence for the case to proceed to trial, and urged a settlement. Weinstein’s draft cites two experts’ estimates of damages, one of $4.9 billion and the other of $3.9 billion to nearly $7.7 billion.

“A global settlement for the overpricing claims and any other claims is desirable,” he wrote in the draft filed Wednesday. “Legal disputes of this nature should be resolved as quickly and comprehensively as possible so that government, the medical profession, and drug manufacturers can get on with their main job -- protecting the people’s health effectively at the cheapest practicable cost.”

Lilly spokeswoman Tarra Ryker on Thursday denied that Lilly pushed Zyprexa for uses other than prescribed.