Astrazeneca and Seroquel Escape Lawsuits

Back in April 2010, Astrazeneca settled the federal investigation into its marketing practices for Seroquel for a mere $520 million. I say "mere" because Seroquel alone brings in this much revenue to AZN in a few weeks. They made almost $5 billion on the drug last year. The settlement is barely dissuasive in the financial sense. We all know if you can get your product used in off-label areas where you can be the first atypical used, then your foothold will be strong and marketing costs will stay low. If you happen to get the indication later, then that's just icing on the cake (See Seroquel in Bipolar and Depression and Austism).

Now, Astrazeneca is settling its lawsuits with individuals. Yesterday they announced that 17,500 of the suits had been settled for only $198 million. I don't know which firm AZN retains, but those suits earned every penny. $198 million barely registers. Probably 2 weeks of Seroquel sales. This is all great news for AZN as they work to put the bad press behind them. There are many lawsuits left, which is good because there isn't much time left for Seroquel which goes off-patent in March 2012 if AZN can fend off Teva for that long. That's plenty of time to transition physicians and patients to XR though which currently has a patent through 2017.