Losing in court and in shares

Six billion US dollars worth of punitive damage. One of the biggest awards Takeda Pharmaceutical has ever received. A federal court found the Japanese giant guilty of hiding cancer risks of Actos medicine in the first US trial.

Actos (pioglitazone) is a key product of the biggest pharmaceutical company in Japan and Asia. It is used to treat Type 2 Diabetes. Eli Lilly&Co was also sentenced by the same Lafayette, Louisiana court to pay 3 billion US dollars on the same accusation.

The 9 billion dollar jury award is the seventh largest in U.S. History. However, there are almost no chances the figure will stand tall in the Supreme Court. The country's highest court said punitive verdicts must be proportional to compensatory awards. Takeda lawyers confirmed after the verdict, the company does not stand by the decision and it would challenge it through post-trial motions and an appeal.

A former Actos user, Terrance Allen blames Takeda for hiding the effects of the drug and for his cancer. He was awarded by the same court 1,5 million dollars in compensatory damages. “I hope Takeda executives in Japan hear what this jury had to say loudly and clearly,” Allen's lawyer said.

The verdict dropped hard on Takeda shares that lost 8.8 percent in Tokyo before regaining and only loosing 5.2 percent. Takeda shares were marketable for 4,572 yen and eight month low, registering the biggest one day drop in the last five years.