PHARMACY

Eli Lilly to pay $1.415B to resolve allegations of unapproved use of antipsychotic drug Zyprexa

BY Alaric DeArment

WASHINGTON Drug maker Eli Lilly & Co. has agreed to pay $1.415 billion to resolve allegations that it promoted the antipsychotic drug Zyprexa for unapproved uses.

The Department of Justice announced Thursday that the Indianapolis-based company would pay a $515 million criminal fine – the largest ever in a healthcare case and the largest criminal fine ever imposed on an individual corporation – and up to $800 million in a civil settlement with the federal government and the states. It also will forfeit assets of $100 million.

The settlement will resolve criminal and civil allegations that Lilly promoted Zyprexa (olanzapine) for uses not approved by the Food and Drug Administration, including treatment of dementia in elderly people.

In a plea agreement, the company has admitted its guilt to a misdemeanor charge. It also signed a civil settlement to resolve claims that by marketing the drug for off-label uses, it caused the submission of false payment claims to federal health insurance plans such as Medicaid, TRICARE and the Federal Employee Health Benefits Program.

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MTI launches Rite Aid Radio

BY Michael Johnsen

MIAMI BEACH, Fla. Music Technologies International on Tuesday announced that it’s “Rite Aid Radio,” a music and messaging program designed exclusively for Rite Aid, is now available chainwide.

“We relished the opportunity to start from scratch with Rite Aid in creating a music environment that is much more ‘tune’ with their customers,” said Bradley Golden, president of MTI. “We feel that we have helped to create an even more inviting audio ambiance in the stores.”

MTI built the music library song by song to appeal to Rite Aid’s customers, the company stated, and also allows Rite Aid to broadcast messages to speak directly to its customers.

This partnership is actually the resumption of a relationship from the 1990’s when MTI provided a similar program to Rite Aid.

“Our number one priority is keeping our customers happy,” said Jerry Cardinale, Rite Aid senior vice president of indirect procurement. “We feel that MTI’s music and messaging program helps us achieve this goal. MTI shares our philosophy of absolute dedication to customer service.”

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Duane Reade announces $3.5 million settlement for Q4 2008

BY Antoinette Alexander

NEW YORK Duane Reade, without admitting liability, has announced a $3.5 million litigation settlement that will result in a $3.5 million one-time, pre-tax charge for the fourth quarter.

The two class action cases concern the retailer’s alleged past payment practices for certain overtime and employee non-exempt classifications.

The settlement is subject to the approval of the U.S. District Court for the Southern District of New York. The company stated that while it believes it can “strongly defend against the matters involved in this litigation” it has decided to settle to avoid additional defense costs and uncertainty surrounding the litigation.

The retailer, which operates 251 stores, is expected to announce its fourth quarter and fiscal year 2008 results in March.

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