Drug manufacturers to settle US opioid litigation with $50 billion package
pharmafile | October 17, 2019 | News story | Business Services |
Five drug makers and distributors are now offering $22 billion in cash, as well as drugs and services, valued at $28 billion; to resolve ongoing lawsuits against the industry on claims it fuelled the opioid crisis in the US.
The industry currently faces roughly 2,600 lawsuits brought by state and local governments, hospitals and other bodies seeking to hold the drug manufacturers culpable and responsible for the toll of the opioid abuse. Local governments are seeking funds to cover the costs of services in their communities.
According to Reuters, Distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health have offered to pay $18 billion in cash over 18 years, while Johnson & Johnson would pay $4 billion in cash.
Teva Pharmaceuticals has also offered to give away medications it values at $15 billion as part of the deal and provide distribution services it values in the billions.
Teva’s proposed agreement would run over 10 years and has a total estimated value of around $28 billion. However it was not fully understood how the valuation was reached and one source said that some states are asking whether Teva should pay in cash as well.
In a joint statement late on Wednesday, the lead attorneys for the cities and counties pursuing federal lawsuits – Joe Rice, Paul Farrell and Paul Hanly – called media reports that they were tentatively supporting the settlement proposal “inaccurate.”
“We await the fine print of the settlement framework so that we can work alongside the 2,600 communities we represent to determine the best path forward.” they said.
There was however as of yet no formal guarantee a deal would be struck.
Opioid addiction has claimed the lives of roughly 400,000 people in the United States between 1999 and 2017.
Nik Kiran
