AstraZeneca to pay $198 mn for Seroquel claims

Global pharma major AstraZeneca Plc today said it will pay $198 million to settle claims against its anti psychotic drug Seroquel in the US.

The UK-based drug maker has reached settlement on the monetary terms with the attorneys representing around 17,500 liability claims the company is facing in the US, a statement said.

The specific terms of the agreements, which are the result of court-ordered mediation, are confidential and subject agreement on non-monetary terms, the statement added.

In the past few years, AstraZeneca has faced thousands of lawsuits alleging the use of Seroquel caused diabetes and other injuries and that the firm had not adequately warned about the risks involved with the drug.

Seroquel, one of the biggest selling drug of the company, raked in sales of $4.87 billion last year, representing 15 per cent of the firm's total revenue.

AstraZeneca is continuing to participate in mediation process covering claims in both federal and state jurisdictions, the statement added.

Around 2,900 additional cases have been dismissed by order or agreement and about 1,825 of those cases have been dismissed with prejudice as of June 29 this year.

AstraZeneca, a leader in gastrointestinal, neuroscience, cardiovascular, respiratory, oncology and infectious disease medicines, had generated total global revenues of $32.8 billion in 2009.