The Curious Case Of AstraZeneca v. ACE

By GUEST BLOGGER | Published: JULY 31, 2013 by Mike Kelly and Andrew Dupre Insurance contracts are a language game that must be played very carefully, as AstraZeneca learned. From 2003 to 2012, AstraZeneca Plc was locked in one of the largest mass tort litigations in the United States, defending its blockbuster second generation atypical antipsychotic product Seroquel from allegations of failure-to-warn of risks of metabolic injury such as diabetes mellitus Type II.  AstraZeneca prevailed on the lone case to reach a jury, won an additional nine cases during pretrial proceedings nationwide–losing none, and then ended the litigation with a global settlement acclaimed in the business press as a “great deal,” at roughly 50% of what its competitors paid.  Yet through a curious twist, AstraZeneca’s insurance claim for the cost of its winning defense was rejected to the tune of £133 million.  AstraZeneca Insurance Company v. XL Insurance (Bermuda) Ltd. & ACE Bermuda Insurance Ltd. – a case of first impression under England & Wales law – has important implications for any company insuring US pharmaceutical mass tort risks. Background Over 23,000 plaintiffs in multiple US jurisdictions alleged that AstraZeneca’s atypical antipsychotic (colloquially, “AA”) product Seroquel, along with competing products in the  AA class such as Eli Lilly’s Zyprexa and Johnson & Johnson’s Risperdal, “caused” diabetes mellitus type II and rel...
Source: PharmaGossip - Category: Pharma Commentators Authors: Source Type: blogs