Drug giant Takeda says it will fight $6 bil U.S. damages order

TOKYO —

Japanese drug giant Takeda Pharmaceutical said Tuesday it would fight a huge $6 billion damages order following a U.S. trial over the safety of its Actos diabetes medicine.

The company said it “respectfully disagrees” with the judgement awarded by a jury in the southern state of Louisiana on Monday, which also ordered the firm’s co-defendant US drugs firm Eli Lilly to pay $3.0 billion in damages.

Investors dumped the Japanese firm’s Tokyo-listed shares which fell 5.05% to 4,577 yen on Tuesday.

The issue at the trial, which began in February, was whether the drug could be blamed for bladder cancer in a plaintiff who was taking the medicine, and whether the firm knew about those risks, with other U.S. cases still pending.

“Takeda respectfully disagrees with the verdict and we intend to vigorously challenge this outcome through all available legal means, including possible post-trial motions and an appeal,” Kenneth Greisman, senior vice president and general counsel for Takeda’s U.S. unit, said in a statement.

“We believe the evidence did not support a finding that Actos caused (the plaintiff’s) bladder cancer. We also believe we demonstrated that Takeda acted responsibly with regard to Actos.”

While Takeda rings up about half its sales in Japan, North America and Europe are also major markets.

Eli Lilly had partnered with Takeda to help market the drug in the United States.

(c) 2014 AFP

  • 1

    wtfjapan

    no imagine if J companies got fined large sums like this in Japan, theyd be all angels by now or bankrupt

  • 0

    smithinjapan

    "Respectfully disagree" all you like. Other nations don't buy that as a means of contrition. It's good they're fighting it, though... They will lose even more money.

  • 0

    Nessie

    Could be a good chance to buy this stock.

  • 0

    presto345

    Who gets the 6 billion?

  • 0

    sangetsu03

    Who gets the 6 billion?

    The law firm will get most. Since the case required a trial rather than being settled, the law firm will probably take half, plus expenses. The expenses will be high, as many experts will have been hired, and lawyers would have traveled to Japan numerous times, and they don't fly economy class or stay in business hotels. What is left over after this will go to the plaintiff, but the taxman will probably get most of what is left over.

  • -3

    Ghost rider

    The US government desperately needs money and always hits on foreign companies with doubtful arguments. So to ensure the politician get enough "sponsoring". Nothing new.!!

  • -2

    overchan

    Thats the double standard that USA uses.

  • 1

    Moondog

    It's a damages order, not a fine. The government doesn't get anything except maybe court costs.

  • 0

    garymalmgren

    Check out George Clooney's film , Michael Clayton.

    It seems to be a close parallel to this story, without the murder of course.

  • 1

    jerseyboy

    Thats the double standard that USA uses.

    overchan -- did you bother to read the article, or just post your usual anti-U.S. rant without doing so? If you had read the article, you would have seen that Eli Lilly, the U.S. company that imports the drug was also ordered to pay $3.0 billion. Where is the "double standard" in that?

  • 0

    maglev101

    overchan -- did you bother to read the article, or just post your usual anti-U.S. rant without doing so? If you had read the article, you would have seen that Eli Lilly, the U.S. company that imports the drug was also ordered to pay $3.0 billion. Where is the "double standard" in that?

    maybe he meant double, as in $6b vs $3b? :-P

  • -2

    Asian2013

    Just pay up. The US needs it. If it is China that ask more damages, then maybe you can cook up a ruckus!

  • 1

    ryuusei

    @sangetsu03

    LOL no the law firm does not get $3Bn, have some common sense. Expenses are small compared to actual profit/takings in relative AND absolute terms.

  • 0

    praack

    the jury awarded 9 billion US dollars , Takeda is ordered to pay 6 billion , Lily 3 billion- however the actual award was only 1.5 million - so expect that 9 billion to be overturned. it shows a jury that has lost it's objectivity.

    in fact by going so far overboard in punishment the initial award can be appealed by arguing the jury was not being partial and had already made up it's mind to punish the drug companies.

    oh yeah- the jury delivered the verdict with only 4 hours of deliberation - i think they had lunch first

  • 0

    toshiko

    @Tokiyo: This Takeda medicine is used by Diabetic people. And $6 billion judgement is awarded to a diabetic patient. So, a diabetic person who has been using this medicine and lives in Las Vegas area read article on LV Review Journal Newspaper article and just sued. Then a Takeda attorney came out and he said Takeda will oppose this new lawsuit because LVRJ article encouraged the diabetic patient who use Takeda medicine to sue Takeda. We usually have some large casino;s entertainment scenes but this is new so it skipped entertainment scene and reported about Takeda. So, there will be more lawsuits in USA who want several billion dollars from Takeda. That what I am saying. Read article. This is Takeda loss story.

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