Lilly settles Zyprexa case with Alaska for $15 mln

NEW YORK, March 26 (Reuters) - Eli Lilly and Co (LLY.N: Quote, Profile, Research) on Wednesday said it agreed to pay $15 million to settle a lawsuit by Alaska accusing it of concealing possible side effects from use of Zyprexa, its widely used schizophrenia medicine.

The settlement includes no admission of wrongdoing, and will ensure that Alaska is treated as well as any other state that resolves similar claims.

Lilly said Alaska accused it in a March 2006 lawsuit of failing to properly warn the state and healthcare providers that using Zyprexa could result in side effects relating to weight gain, high blood sugar and diabetes.

Zyprexa is Indianapolis-based Lilly's largest product by far. Sales totaled $4.76 billion in 2007, including $2.24 billion in the United States. (Reporting by Jonathan Stempel; Editing by Louise Ireland)