Jury smacks Takeda, Eli Lilly with $9B verdict over Actos drug

|About: Takeda Pharmaceutical Co.... (TKPYY)|By:, SA News Editor

A jury has ordered Japan's Takeda (TKPYY) to pay $6B and Eli Lilly (LLY) $3B in punitive damages over allegations that they hid the cancer risks associated with the diabetes therapy Actos.

However, Eli Lilly could be off the hook, as Takeda agreed to indemnify Lilly for any legal liability connected to Actos.

In addition, the award is likely to be cut on appeal, as the Supreme Court has set limits on punitive verdicts.

In two previous cases, judges quashed multi-million dollar awards against Actos.

Notwithstanding, Takeda's shares slumped 5.2% in Tokyo.