Eli Lilly joins the list of companies with CEO's earning hefty compensation this year. John Lechleiter's earning package for 2009 was reported at $20.9 million, three times higher than the $6.4 million he received in 2008. Lilly said accounting practices artificially elevated the amount, which otherwise came in at $16 million. Meanwhile, the company is expecting a slowdown after 2011 when Zyprexa goes off-patent for which Lilly stands to lose $5 billion a year.
Settlements with states
In the past month law suits involving Zyprexa have been resolved in Montana, Arkansas and Mississippi. The company admitted no wrongdoing when it agreed to reform of advertising, especially allegations of false advertising. Montana settled for $13 million, of which $9.5 million will be dedicated to fund services and programs.
Last month, Arkansas announced Lilly agreed to a $18.5 million settlement. A similar sum, $18 million, was announced for Miss. A spokesman said the state will use the funds to off-set budget cuts in law enforcement and the courts.
The company has paid about $1.4 billion in settlements with government because Zyprexa is one of the drugs on public formularies.
