Takeda to pay US$2.4 bil. in di­a­betes drug suit

The China Post - - WORLD BUSINESS - BY MARI YA­M­AGUCHI

Ja­pan’s largest drug­maker Takeda Phar­ma­ceu­ti­cal Co. said Wed­nes­day it has agreed to pay US$2.4 bil­lion to thou­sands of pa­tients and their fam­i­lies over its di­a­betes drug Ac­tos which has been linked to can­cer.

Takeda faces 9,000 prod­uct li­a­bil­ity law­suits in the U.S., in which the plain­tiffs say the com­pany failed to in­form them of the drug’s can­cer risks.

The com­pany said the set­tle­ment would re­solve most of the law­suits though it does not ad­mit li­a­bil­ity.

The set­tle­ment will go into ef­fect if 95 per­cent of the lit­i­gants agree to the deal, and the com­pany would pay US$2.37 bil­lion. If the num­ber of par­tic­i­pants rises to 97 or more, Takeda will pay US$2.4 bil­lion.

Takeda said the set­tle­ment is aimed at re­solv­ing the law­suits more quickly and al­low­ing the com­pany to move on.

“Takeda’s de­ci­sion to set­tle does not change the com­pany’s con­tin­ued com­mit­ment to Ac­tos,” it said in a state­ment. “The set­tle­ment will re­duce fi­nan­cial un­cer­tain­ties for the com­pany and pro­vides a sig­nif­i­cant de­gree of as­sur­ance to­ward re­solv­ing a high per­cent­age of the Ac­tos prod­uct li­a­bil­ity claims.” Then Takeda can fo­cus on de­vel­op­ing medicines, it said.

Takeda said it would set aside US$2.7 bil­lion against earn­ings in the Jan­uary-March quar­ter to cover the set­tle­ment and re­lated costs.

It would cause the com­pany a group net loss of 145 bil­lion yen (US$1.2 bil­lion) for the busi­ness year ended March 31, send­ing it into the red for the first time since its 1949 list­ing.

AP

Mod­els pose with LG Elec­tron­ics’ new G4 smartphones dur­ing its un­veil­ing cer­e­mony in Seoul, Wed­nes­day, April 29. LG Elec­tron­ics Inc. says its quar­terly profit plunged 59 per­cent from a year ear­lier as losses from TVs off­set a mod­est im­prove­ment in its smart­phone busi­ness.

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