Justice Department Opens Probe In Presumed lapses at Eli Lilly's COVID-19 Drug Plant: Reuters

Justice Department Opens Probe In Presumed lapses at Eli Lilly's COVID-19 Drug Plant: Reuters
  • The U.S. Justice Department has launched a criminal investigation into Eli Lilly and Co LLY focused on alleged manufacturing irregularities and records tampering at Branchburg plant, reports Reuters.
  • The plant manufactures Eli Lilly’s COVID-19 therapy and other drugs, three people familiar with the matter said.
  • The probe represents a significant escalation of the government scrutiny on Lilly.
  • Last week, Emergent BioSolutions Inc’s EBS executives faced House Select Subcommittee on the Coronavirus related to its troubled Baltimore plant that ruined 15 million Johnson & Johnson’s JNJ COVID-19 vaccine doses.
  • Today, the company received a subpoena from the Justice Department seeking documents related to the Branchburg factory.
  • The company did not disclose anything more about the nature or focus of the investigation and said it was cooperating fully in the matter.
  • Lilly said it had previously engaged external counsel to conduct an independent investigation of some allegations regarding the Branchburg plant. It submitted the same information to Reuters in response to the news agency’s questions.
  • The investigation is in its earliest stages, the three people told Reuters, and the Justice Department has not accused Lilly or any of its employees of wrongdoing.
  • The department could ultimately pursue criminal charges, seek civil sanctions, or close the probe without action.
  • Price Action: LLY shares are down 1.04% at 198.90 during the market session on the last check Thursday.

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