AstraZeneca facing 26,000 suits over Seroquel

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AstraZeneca facing 26,000 suits over Seroquel

By JEF FEELEY and MARGARET CRONIN FISK •

Bloomberg News

• February 4, 2010

AstraZeneca

PLC is facing as many as 26,000 lawsuits over its antipsychotic drug

Seroquel as the drug maker prepares for its first jury trial over

claims the medicine causes diabetes, according to court filings.

Attorneys

for AstraZeneca, which has its U.S. headquarters in Fairfax, met with

plaintiffs' lawyers in court-ordered mediation sessions last month to

discuss a possible settlement, according to court filings. Consumers'

lawyers said they had about 26,000 cases in their inventories,

Saltzburg, a Washington University Law School professor who

served as mediator, said.

"I

wish there were a magic wand that could be waved to settle all Seroquel

cases instantly," Saltzburg said in the filing. "Such a wand does not

exist."

In a

Securities and Exchange Commission filing last week, AstraZeneca

executives noted the company has paid about $656 million to defend

itself in Seroquel cases. That's an increase of 28 percent, or $144

million, over last year's Seroquel defense costs, according to

regulatory filings. The company said it had insurance of $521 million

to cover Seroquel defense costs as of December.

The

company said in the SEC filing it faces more than 25,000 claims that

Seroquel caused diabetes. That's a 65 percent increase in cases over

the number the company reported in a January 2009 regulatory filing.

Many of the suits also claim AstraZeneca promoted Seroquel, approved

for schizophrenic and bipolar patients, for unapproved uses.

Saltzburg

said the two-day talks didn't generate a resolution, but he expects

negotiations will take place at some point between the company and

individual users' lawyers.

"The

question is what is fair for plaintiffs and what is fair for AZ," the

professor said in the report. "The parties are far apart at the moment

on resolving that question."

AstraZeneca's

stock fell last week after the drug maker's sales forecast and

stock-buyback plan disappointed some analysts and fourth-quarter profit

missed estimates. The company plans to buy back as much as $1 billion

of shares this year, managers said Jan. 28.

A

New Jersey judge has set a Feb. 16 trial date for the first of

thousands of Seroquel cases filed in that state to go before a jury.

Seroquel, which generated sales of $4.9 billion last year, is

AstraZeneca's second-biggest seller after the ulcer treatment Nexium.

"The

evidence, looked at fairly and fully, does not back up the allegations

that Seroquel was responsible for the plaintiffs' alleged injuries,"

AstraZeneca spokesman Tony Jewell said in an e-mail.

In

November, a judge in Florida who is overseeing all federal-court

litigation over Seroquel ordered the company to meet with plaintiffs'

lawyers and Saltzburg to discuss settlement.

U.S.

District Judge Anne Conway in Florida, who is overseeing pre-trial

proceedings in federal Seroquel litigation, said in November that she

would ask a panel of judges to return the 6,000 cases consolidated

before her to their home courts for trial.

[Guest guest]

http://www.delawareonline.com/article/20100204/BUSINESS/2040314/1003/AstraZeneca+facing+26+000+suits+over+Seroquel

AstraZeneca facing 26,000 suits over Seroquel

By JEF FEELEY and MARGARET CRONIN FISK •

Bloomberg News

• February 4, 2010

AstraZeneca

PLC is facing as many as 26,000 lawsuits over its antipsychotic drug

Seroquel as the drug maker prepares for its first jury trial over

claims the medicine causes diabetes, according to court filings.

Attorneys

for AstraZeneca, which has its U.S. headquarters in Fairfax, met with

plaintiffs' lawyers in court-ordered mediation sessions last month to

discuss a possible settlement, according to court filings. Consumers'

lawyers said they had about 26,000 cases in their inventories,

Saltzburg, a Washington University Law School professor who

served as mediator, said.

"I

wish there were a magic wand that could be waved to settle all Seroquel

cases instantly," Saltzburg said in the filing. "Such a wand does not

exist."

In a

Securities and Exchange Commission filing last week, AstraZeneca

executives noted the company has paid about $656 million to defend

itself in Seroquel cases. That's an increase of 28 percent, or $144

million, over last year's Seroquel defense costs, according to

regulatory filings. The company said it had insurance of $521 million

to cover Seroquel defense costs as of December.

The

company said in the SEC filing it faces more than 25,000 claims that

Seroquel caused diabetes. That's a 65 percent increase in cases over

the number the company reported in a January 2009 regulatory filing.

Many of the suits also claim AstraZeneca promoted Seroquel, approved

for schizophrenic and bipolar patients, for unapproved uses.

Saltzburg

said the two-day talks didn't generate a resolution, but he expects

negotiations will take place at some point between the company and

individual users' lawyers.

"The

question is what is fair for plaintiffs and what is fair for AZ," the

professor said in the report. "The parties are far apart at the moment

on resolving that question."

AstraZeneca's

stock fell last week after the drug maker's sales forecast and

stock-buyback plan disappointed some analysts and fourth-quarter profit

missed estimates. The company plans to buy back as much as $1 billion

of shares this year, managers said Jan. 28.

A

New Jersey judge has set a Feb. 16 trial date for the first of

thousands of Seroquel cases filed in that state to go before a jury.

Seroquel, which generated sales of $4.9 billion last year, is

AstraZeneca's second-biggest seller after the ulcer treatment Nexium.

"The

evidence, looked at fairly and fully, does not back up the allegations

that Seroquel was responsible for the plaintiffs' alleged injuries,"

AstraZeneca spokesman Tony Jewell said in an e-mail.

In

November, a judge in Florida who is overseeing all federal-court

litigation over Seroquel ordered the company to meet with plaintiffs'

lawyers and Saltzburg to discuss settlement.

U.S.

District Judge Anne Conway in Florida, who is overseeing pre-trial

proceedings in federal Seroquel litigation, said in November that she

would ask a panel of judges to return the 6,000 cases consolidated

before her to their home courts for trial.

[Guest guest]

http://www.delawareonline.com/article/20100204/BUSINESS/2040314/1003/AstraZeneca+facing+26+000+suits+over+Seroquel

AstraZeneca facing 26,000 suits over Seroquel

By JEF FEELEY and MARGARET CRONIN FISK •

Bloomberg News

• February 4, 2010

AstraZeneca

PLC is facing as many as 26,000 lawsuits over its antipsychotic drug

Seroquel as the drug maker prepares for its first jury trial over

claims the medicine causes diabetes, according to court filings.

Attorneys

for AstraZeneca, which has its U.S. headquarters in Fairfax, met with

plaintiffs' lawyers in court-ordered mediation sessions last month to

discuss a possible settlement, according to court filings. Consumers'

lawyers said they had about 26,000 cases in their inventories,

Saltzburg, a Washington University Law School professor who

served as mediator, said.

"I

wish there were a magic wand that could be waved to settle all Seroquel

cases instantly," Saltzburg said in the filing. "Such a wand does not

exist."

In a

Securities and Exchange Commission filing last week, AstraZeneca

executives noted the company has paid about $656 million to defend

itself in Seroquel cases. That's an increase of 28 percent, or $144

million, over last year's Seroquel defense costs, according to

regulatory filings. The company said it had insurance of $521 million

to cover Seroquel defense costs as of December.

The

company said in the SEC filing it faces more than 25,000 claims that

Seroquel caused diabetes. That's a 65 percent increase in cases over

the number the company reported in a January 2009 regulatory filing.

Many of the suits also claim AstraZeneca promoted Seroquel, approved

for schizophrenic and bipolar patients, for unapproved uses.

Saltzburg

said the two-day talks didn't generate a resolution, but he expects

negotiations will take place at some point between the company and

individual users' lawyers.

"The

question is what is fair for plaintiffs and what is fair for AZ," the

professor said in the report. "The parties are far apart at the moment

on resolving that question."

AstraZeneca's

stock fell last week after the drug maker's sales forecast and

stock-buyback plan disappointed some analysts and fourth-quarter profit

missed estimates. The company plans to buy back as much as $1 billion

of shares this year, managers said Jan. 28.

A

New Jersey judge has set a Feb. 16 trial date for the first of

thousands of Seroquel cases filed in that state to go before a jury.

Seroquel, which generated sales of $4.9 billion last year, is

AstraZeneca's second-biggest seller after the ulcer treatment Nexium.

"The

evidence, looked at fairly and fully, does not back up the allegations

that Seroquel was responsible for the plaintiffs' alleged injuries,"

AstraZeneca spokesman Tony Jewell said in an e-mail.

In

November, a judge in Florida who is overseeing all federal-court

litigation over Seroquel ordered the company to meet with plaintiffs'

lawyers and Saltzburg to discuss settlement.

U.S.

District Judge Anne Conway in Florida, who is overseeing pre-trial

proceedings in federal Seroquel litigation, said in November that she

would ask a panel of judges to return the 6,000 cases consolidated

before her to their home courts for trial.

[Guest guest]

http://www.delawareonline.com/article/20100204/BUSINESS/2040314/1003/AstraZeneca+facing+26+000+suits+over+Seroquel

AstraZeneca facing 26,000 suits over Seroquel

By JEF FEELEY and MARGARET CRONIN FISK •

Bloomberg News

• February 4, 2010

AstraZeneca

PLC is facing as many as 26,000 lawsuits over its antipsychotic drug

Seroquel as the drug maker prepares for its first jury trial over

claims the medicine causes diabetes, according to court filings.

Attorneys

for AstraZeneca, which has its U.S. headquarters in Fairfax, met with

plaintiffs' lawyers in court-ordered mediation sessions last month to

discuss a possible settlement, according to court filings. Consumers'

lawyers said they had about 26,000 cases in their inventories,

Saltzburg, a Washington University Law School professor who

served as mediator, said.

"I

wish there were a magic wand that could be waved to settle all Seroquel

cases instantly," Saltzburg said in the filing. "Such a wand does not

exist."

In a

Securities and Exchange Commission filing last week, AstraZeneca

executives noted the company has paid about $656 million to defend

itself in Seroquel cases. That's an increase of 28 percent, or $144

million, over last year's Seroquel defense costs, according to

regulatory filings. The company said it had insurance of $521 million

to cover Seroquel defense costs as of December.

The

company said in the SEC filing it faces more than 25,000 claims that

Seroquel caused diabetes. That's a 65 percent increase in cases over

the number the company reported in a January 2009 regulatory filing.

Many of the suits also claim AstraZeneca promoted Seroquel, approved

for schizophrenic and bipolar patients, for unapproved uses.

Saltzburg

said the two-day talks didn't generate a resolution, but he expects

negotiations will take place at some point between the company and

individual users' lawyers.

"The

question is what is fair for plaintiffs and what is fair for AZ," the

professor said in the report. "The parties are far apart at the moment

on resolving that question."

AstraZeneca's

stock fell last week after the drug maker's sales forecast and

stock-buyback plan disappointed some analysts and fourth-quarter profit

missed estimates. The company plans to buy back as much as $1 billion

of shares this year, managers said Jan. 28.

A

New Jersey judge has set a Feb. 16 trial date for the first of

thousands of Seroquel cases filed in that state to go before a jury.

Seroquel, which generated sales of $4.9 billion last year, is

AstraZeneca's second-biggest seller after the ulcer treatment Nexium.

"The

evidence, looked at fairly and fully, does not back up the allegations

that Seroquel was responsible for the plaintiffs' alleged injuries,"

AstraZeneca spokesman Tony Jewell said in an e-mail.

In

November, a judge in Florida who is overseeing all federal-court

litigation over Seroquel ordered the company to meet with plaintiffs'

lawyers and Saltzburg to discuss settlement.

U.S.

District Judge Anne Conway in Florida, who is overseeing pre-trial

proceedings in federal Seroquel litigation, said in November that she

would ask a panel of judges to return the 6,000 cases consolidated

before her to their home courts for trial.