By Paul Kiernan 

RIO DE JANEIRO--A Brazilian judge has fined the local subsidiary of U.S. pharmaceutical firm Eli Lilly Co. 1 billion reais ($451.2 million) after blood tests on its former factory workers revealed heavy metals poisoning, federal labor prosecutors said Friday.

The company was also ordered to pay for medical treatment of all employees, former employees and contractors who worked for more than six months at Lilly's plant in Cosmopolis, Sao Paulo state. Judge Antonia Rita Bonardo required the firm to cover medical treatment of the workers' children as well.

Eli Lilly's Brazilian unit said it would appeal the ruling.

The firm said the Cosmopolis plant, which it operated from 1977 to 2003, was located in an area where agrochemicals were also produced. When it discovered an increase in the concentration of "by-products of the productive process" near its factory, Eli Lilly "voluntarily" notified local regulators.

The firm also denied that the alleged contaminants were ever used at its manufacturing operations.

"In this case there is absolutely no basis for the court's decision that employees were harmed based on extensive scientific and medical assessments conducted by third-party health experts, as well as Lilly," said Michael Harrington, the company's senior vice president and general counsel.

Labor prosecutors said that of 80 former Eli Lilly workers who submitted blood tests, only three didn't show signs of contamination.

"I have heavy metals like lead, arsenic, aluminum, titanium and mercury in my bloodstream," said Elias Soares Vieira, an ex-employee, in the labor prosecutors' press statement. "Because of that, I developed kidney cancer and had to have my right kidney removed, lost function of my left one and suffered liver damage."

Write to Paul Kiernan at paul.kiernan@wsj.com

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