Shares of Eli Lilly & Co. (LLY) are down in early trading Tuesday, following a verdict late Monday by a federal court jury that ordered the U.S.-based company and its partner, Takeda Pharmaceutical Co Ltd, to pay a combined $9 billion in punitive damages for concealing cancer risks associated with their Actos diabetes drug.
Eli Lilly, Takeda’s co-defendant in the case, which marketed the drug in the U.S. until 2006, was ordered to pay a $3 billion penalty while Japan’s biggest drug-maker was hit with a $6 billion fine.
Takeda Senior Vice President Kenneth Greisman said the company disagrees with the verdict and intends to “vigorously challenge this outcome through all available legal means, including possible post-trial motions and an appeal”.
According to data compiled by Bloomberg, the $9 billion jury award is the seventh-largest in U.S. history.
Takeda’s share price plunged more than 7% today on Japan’s stock exchange. Eli Lilly fell 87 cents, or 1.48%, to $57.82 in early NYSE trading hours.