Takeda ordered to pay $6 billion damages in Actos trial

8 April 2014

Japan’s largest drugmaker Takeda Pharmaceutical (TYO: 4502) has been ordered to pay $6 billion in punitive damages by a US court over claims that it hid cancer risks associated with type 2 diabetes drug Actos (pioglitazone hydrochloride).

The trial began on February 3 in US District Court, Western District Louisiana, before Judge Rebecca Doherty. US drug major Eli Lilly (NYSE: LLY), Takeda’s US marketing partner, was a co-defendant in the case and has been ordered to pay $3 billion in punitive damages. The allocation of liability was 75% Takeda and 25% Eli Lilly. Takeda’s shares fell by about 9% on the news.

The jury awarded $1.5 million in compensatory damages to plaintiff Terrence Allen who was diagnosed with bladder cancer in January 2011. He was taking Actos from 2004 to 2011. Mr Allen said that Takeda was aware of the link between Actos and bladder cancer early in the decade, but accused the company of withholding the information.

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