AstraZeneca Q2: $593M Seroquel Legal Bill Taps Out Insurance; Income Charges Expected

-BNET Pharma

07/30/2009 - AstraZeneca said its Seroquel litigation costs have exceeded $593 million, and that it has tapped out the extent of its liability insurance. With no more insurance available to cover its bills, the company said it will take charges on its income statement in upcoming quarters.

The news comes as AstraZeneca also gave an update on the scale of the litigation filed against it: 10,381 cases are pending.

AstraZeneca said its insurers may dispute the $593 million the company believes it is owed:

The insurers that issued the applicable policies for 2003 have reserved the right to dispute coverage for Seroquel-related product liability claims on various grounds, and AstraZeneca currently believes that there are likely to be disputes with some or all of its insurers about the availability of some or all of this coverage.

This amount is approximately equal to the maximum insurance receivable that AstraZeneca will recognise under applicable accounting principles at this time with respect to the applicable insurance policies. Accordingly, beginning in the second half of 2009, management anticipates defence costs and damages, if any, that may be incurred in connection with Seroquel-related product liability claims will result in a charge to the income statement. There can be no assurance that additional coverage under the policies will be available or that the insurance receivable we have recognised as of 30 June 2009 will be realisable in full.

The suits claim that AstraZeneca failed to warn patients that the antipsychotic drug caused weight gain and diabetes.

If you or a loved one have experienced any of the serious Seroquel side effects such as hyperglycemia or diabetes during or after Seroquel treatment, you may be entitled to compensation. Contact the Seroquel attorneys of Ennis & Ennis today for a free confidential case evaluation. Our on staff nurse and lawyers are standing by to answer any questions you may have regarding Seroquel side effects, a possible Seroquel class action lawsuit, or any other type of Seroquel litigation.