Eli Lilly's $3 Billion Mistake
After a long court battle for Eli Lilly and partner Takeda, alleging that the companies didn't adequately disclose the cancer risks for Takeda's drug Actos, a jury verdict from the Federal Court of Louisiana came back with a harsher penalty than anyone anticipated. The two companies were fined a combined total of $9 billion, with Takeda carrying the burden of $6 billion, while Eli Lilly will be responsible for the remainder.
In this segment of Tueday's Market Checkup, Motley Fool health care analysts David Williamson and Michael Douglass take a look at what appear to be massive fines at first blush, and discuss why they don't see this as a reason for investors to overreact. They point to three prior Actos cases in which the juries' verdicts were overturned, and note that actual payment of these large fines may still be decades away, after the amounts have been significantly reduced through the appeals process.
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The article Eli Lilly's $3 Billion Mistake originally appeared on Fool.com.David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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