June 15, 2009

CVS Company Helped Lilly Promote Zyprexa

I'm not even sure how to explain the relationship between Lilly and a subsidiary of CVS, the huge pharmacy company, so I'll just pinch from Bloomberg's fine coverage:

"A unit of CVS Caremark Corp. used its access to doctors to market Eli Lilly & Co.'s Zyprexa antipsychotic while it was under contract to bargain with the drug maker on behalf of health insurers, internal Lilly files disclosed in a multibillion-dollar lawsuit by insurers show. "The subsidiary of CVS, the largest US drugstore chain, touted Zyprexa starting in 2003, according to e-mails made public by lawyers suing Lilly for overpayment. CVS's AdvancePCS, a pharmacy benefit manager, or PBM, offered to send 120,000 letters to doctors promoting the drug, Lilly's top-seller with $4.7 billion in sales last year, according to a confidential 2004 proposal. The CVS unit said it would charge $5 per letter.

"CVS's contracts with insurers and pensions meanwhile place it in an adversarial posture with Lilly, requiring it to use its buying power as leverage in drug-price negotiations.

"'The problem is that PBMs are negotiating these hidden deals while at the same time telling employers that they represent them at the negotiating table,' said Gerry Purcell, a former PBM executive who advises companies on their drug plans. 'These documents will add fuel to the perception that the companies and the PBMs are in cahoots with each other.'"

I don't know who's more at-fault here--Lilly or CVS--but these kinds of relationships certainly cannot be much good for patients or doctors.

Posted by Philip Dawdy at June 15, 2009 12:05 AM
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If it was something 'tainted', you can be sure that Eli Lilly was somehow involved. Don't know about CVS pharmacy but I am sure they were taught their tricks by masters.

Back in 1994, Lilly managed to save Prozac during the Wesbecker civil trial by secretly settling the case during the middle of the trial and then proceeding without informing the judge and jury that they had done so. The judge, John Potter, figured something was wrong because the defense did not present all the evidence they had begged Judge Potter to allow into court. So Judge Potter checked and, sure enough, Lilly had done something unethical.

So Judge Potter had the verdict changed from "won" to 'settled.

Of course, nobody was paying any attention to the Wesbecker trial [probably the most important civil trial of the 20th century] because everyone was focused on the upcoming O.J. Simpson trial who was, it was discovered afterwards, on a double dose of Prozac at the time of the murders.

Here is part of the story on the Wesbecker trial followed by some of the O.J. Simpson story on Prozac.

http://ssristories.com/show.php?item=301

Paragraph five reads: "Coleman when later deposed testified: 'I knew that Prozac in some people could cause nervousness, can cause agitation, can cause sleep problems, plus I had started him on it three or four weeks before. When you start a new medication and something different happens, you tend to suppose that it’s the medication that is causing it within that period of time'”.

Last paragraph reads: "The Fentress/Wesbecker trial gave rise to a series of hearings afterwards, which overturned the verdict in favour of Lilly and dismissed the case as settled. The background to these hearings is outlined in an Amicus Brief to the court and a verdict from the Kentucky Supreme Court."

http://www.healyprozac.com/Trials/Fentress/background.htm

Fentress et al v Shea Communications et al.
Trial Background

This was the trial following the murder spree of Joseph Wesbecker at his place of work in Louisville, Kentucky, which led to the death of 8 employees at the Standard Gravure plant followed by his own suicide.

--------------------------------------------------
http://www.ssristories.com/show.php?item=1307

First two sentences read: " O.J. SIMPSON did have an accomplice in the murders a criminal jury said he didn't commit - it was Prozac. That's according to Mike Gilbert, a sports agent and longtime pal of Simpson, who says the ex-grid great was flying high on not one, but two prescriptions of the mood-altering drug at the time of the grisly 1994 killings."

http://www.nypost.com/seven/11262006/gossip/pagesix/if_he_did_it__blame_prozac_pagesix_.htm

IF HE DID IT, BLAME PROZAC

Posted by: Rosie at June 15, 2009 07:17 AM

CVS looks to be pretty dirty. They have a Medicare drug plan that pays them more for meds than other pharmacies. More than a reasonable market difference. FTC had hearings on the issues.
Its like the old scam of the mine/mill company money that can only be spent in their store(without extra hassle). We sell you insurance, to protect you from our high prices, which will be selectively set to make sure you're pushed out of coverage faster. But don't worry you can buy some extra coverage for that also.......

For reference, The Charlotte Observer is the main paper for Charlotte NC. http://www.charlotteobserver.com/597/story/720985.html

Posted by: charlottean at June 15, 2009 12:03 PM

^ U.S. Department of Justice. Caremark to Pay $161 Million in Fraud and Kickback Cases. Press release. http://www.usdoj.gov/opa/pr/Pre_96/June95/342.txt.html. Retrieved on 2008-02-25.
^ "Report: Caremark, DOJ nearing settlement". Nashville Business Journal. 2005-05-27. http://www.bizjournals.com/nashville/stories/2005/05/23/daily36.html. Retrieved on 2008-02-25.
^ "CVS Caremark Agrees To Pay $38.5M To Settle Allegations That It Did Not Pass on Rebates, Discounts to Patients, Employers". Kaiser Daily Health Policy Report. Kaiser Family Foundation. 2008-02-15. http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=50454. Retrieved on 2008-02-25.
^ a b c Miller, James P. (2008-02-14). "CVS Caremark settles deceptive-practices complaint for $38.5 million". Chicago Tribune. http://www.chicagotribune.com/business/chi--cvs-carmark-settlement-feb14,0,7852078.story. Retrieved on 2008-02-25.
^ a b Levick, Diane (2008-02-15). "Caremark Settles States' Probe". Hartford Courant. http://www.courant.com/business/hc-caremark0215.artfeb15,0,3595370.story. Retrieved on 2008-02-25.
^ a b Levy, Marc (2008-02-14). "Caremark to pay $38M to settle drug-switching complaint". AP/San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/02/14/state/n134614S07.DTL. Retrieved on 2008-02-25

Posted by: Dan at June 15, 2009 07:21 PM

I have actually never heard a story reporting anything positive about PBMs. Not even about their supposed cost-savings. Everything I've ever read, literally, has been about how shady they are and the sorts of things that go on behind closed doors at those places. And also how they do not really represent the companies they are paid to represent.

Posted by: joe at June 23, 2009 10:43 PM
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