Skip to content
Business

Astra pays $198M to settle Seroquel lawsuits

LONDON - AstraZeneca P.L.C. says it has paid about $198 million to settle U.S. lawsuits over its antipsychotic drug Seroquel.

    Published 

LONDON - AstraZeneca P.L.C. says it has paid about $198 million to settle U.S. lawsuits over its antipsychotic drug Seroquel.

AstraZeneca said today that it has paid out to about 17,500 claimants regarding allegations the drug causes diabetes in some users.

The company says the payouts won't affects its earnings guidance for this year of $6.35 to $6.65 a share.

The settlements follow a July order from the U.S. Food and Drug Administration that the London-based company stop using a promotional letter for Seroquel XR - an extended release version of the medicine - that doesn't carry a diabetes warning.

Seroquel is the company's second biggest seller after its Nexium ulcer drug. It generated sales of $4.9 billion last year, or 15 percent of the company's revenue.

The British drugmaker has U.S. headquarters near Wilmington and a division in the Philadelphia area.

Late this morning, shares were priced at $52.76, up 46 cents.