Pharmaceuticals say enough U.S. states to go on will participate in a $ 26 billion opioid settlement

File Photo: Opioid-based hydrocodone tablets at a pharmacy in Portsmouth, Ohio, June 21, 2017.Reuters / Brian Woolston

September 4, 2021

Nate Raymond

(Reuters) – Major US drug distributor and pharmaceutical company Johnson & Johnson settles $ 26 billion to resolve allegations that contributed to the opioid epidemic after the addition of “sufficient” states The two companies said they plan to proceed with the proposal on Saturday.

Until Saturday, the two companies had to decide whether enough states would support a $ 21 billion settlement with McKesson, AmerisourceBergen, and Cardinal Health and a $ 5 billion agreement with J & J. ..

Distributors said 42 states, 5 regions and Washington, DC have signed the deal. The exact aggregate of J & J’s related transactions was not immediately apparent.

According to distributors, the two companies will deposit their first annual settlement with Escrow by September 30th. They added that the final amount depends on several factors, such as the state’s final participation rate and administrative divisions.

North Carolina Attorney General Josh Stein, the leader of the settlement negotiations, called the level of support “a prominent manifestation of national unity and commitment to tackle this issue.”

The complex formula of the settlement envisioned at least 44 states to participate, but ultimately the entity had to decide whether a “critical mass” had participated and whether to close the deal. bottom.

Eight states, Alabama, Georgia, Nevada, New Mexico, Oklahoma, Washington, and West Virginia, have previously stated that they have not fully signed by the August 21 deadline.

Participating state cities and counties must also participate until January 2. Ultimately, $ 10.7 billion is tied to the extent to which the region participates.

The deal, announced by 14 state attorney generals on July 21, ignored the danger signal that painkillers were being diverted to the community for illegal use and J & J reduced the risk of opioid addiction. It aims to resolve more than 3,000 proceedings accusing distributors of the matter.

The money will fund treatment and other services.

The two companies have denied cheating, saying the drug has been approved by the US Food and Drug Administration and that doctors and regulators are responsible for boosting painkiller sales.

The deal is separate from the settlement that resolves similar claims against the owners of Oxycontin maker Purdue Pharma LP and its wealthy Suckler family. A bankruptcy judge on Wednesday approved the deal, which Purdue University has valued at over $ 10 billion.

(Report by Nate Raymond in Boston and Aishwarya Nair in Bangalore, edited by Matthew Lewis, Sonya Hepinstall, Richard Chang)

Pharmaceuticals say enough U.S. states to go on will participate in a $ 26 billion opioid settlement

Source link Pharmaceuticals say enough U.S. states to go on will participate in a $ 26 billion opioid settlement

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