State has sued Lilly over drug: ZYPREXA: Suit is one of 1,200 still pending; 28,000 claims settled.

Anchorage Daily News

By: Lisa Demer

Zyprexa, a medication for schizophrenia and bipolar disorder, is Eli Lilly’s best-seller. But the company has been embroiled in controversy over it for years.

A lawsuit filed last year by the state of Alaska against Eli Lilly over Zyprexa is among hundreds still unresolved.

The state contends Lilly failed to warn of serious health risks for people who take Zyprexa, including the risk of diabetes. It wants the company to cover treatment costs of Medicaid patients who suffered serious health effects, including diabetes, after being on the drug.

“The state Medicaid agency is going to incur a huge expense to treat these conditions going forward … things that we can attribute to taking Zyprexa,” said Ed Sniffen, the assistant attorney general handling the state suit …

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