
By Joanne Kenen and Rochelle Sharpe
Indiana Gov. Mitch Daniels, a potential Republican presidential candidate respected for his fiscal prudence, credits his success in government to the business skills he learned as a pharmaceutical executive.
But when Daniels worked as a top executive at Eli Lilly & Co., one of the world’s largest drug firms, the pharmaceutical giant’s reputation was tarred by some of the nation’s ugliest drug scandals.
In the decade that Daniels climbed the corporate ladder at Eli Lilly, the company was illegally marketing its leading osteoporosis drug, Evista, as well as its blockbuster antipsychotic, Zyprexa, putting tens of thousands of patients in harm’s way. Lilly pleaded guilty to two criminal misdemeanors, paid more than $2.7 billion in fines and damages, settled more than 32,000 personal injury claims — and copped to one of the largest state consumer protection cases involving a drug company in U.S. history, a review by iWatch News shows.
The company also became embroiled in a high-profile legal brawl over its patent for the antidepressant Prozac.
Daniels became increasingly influential as he rose through the company’s ranks in positions that involved polishing the drugmaker’s image and then shaping its