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States reach $26 billion deal with wholesalers, J&J over opioid lawsuits – Boston, Massachusetts

Boston, Massachusetts 2021-07-21 14:55:55 –

TThree of the largest pharmaceutical wholesalers and major pharmaceutical companies have signed a $ 26 billion deal to settle a lawsuit accusing the company of contributing to the opioid crisis that claimed the lives of 500,000 people for nearly 20 years.

As part of the settlement, wholesaler – McKesson (MCK), AmerisourceBergen (ABC) And Cardinal Health (CAH) – Johnson & Johnson (JNJ) Agreed to withdraw from the opioid business, paying up to $ 5 billion over nine years. More than 40 states are expected to agree to a settlement, according to North Carolina Attorney General Josh Stein.

Approximately 3,000 proceedings filed by states, counties, cities, and tribes alleged that wholesalers were unable to monitor suspicious shipments. Pharmaceutical companies have been accused of downplaying the risk of addiction to opioid analgesics and at the same time encouraging doctors to overprescribe the drug.

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According to the Centers for Disease Control and Prevention, more than 93,000 people died from drug overdose in 2020. This is a record high, up 30% from 2019. data.. Fees have burdened communities across the country as they have tried to cope with the costs of overdose and death. It is expected that a significant portion of the settlement funds will be used to treat and prevent opioids.

In a media briefing announcing the settlement, Pennsylvania Attorney General Josh Shapiro said, “This epidemic was triggered by an army of pharmaceutical company executives who decided to prioritize interests over national health and well-being. “. However, the agreement made no mention of criminal accusations, and New York Attorney General Letitia James declined to comment when asked if he could be charged at a later date.

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According to Stein, the state estimates that the settlement between opioid makers and wholesalers will total about $ 32.7 billion. For example, wholesalers have previously reached a $ 215 million agreement with two Ohio counties. In addition, proceedings continue in various courts across the country, including West Virginia, New York, and California.

The settlement also calls on wholesalers and state regulators to establish a centralized, independent clearinghouse to provide aggregated data on where and how often medicines are shipped. The goal is to eliminate the “blind spot” of current distribution systems. Both companies are also expected to crack down on suspicious pharmacy orders and increase oversight of diversion prevention programs.

Meanwhile, Purdue Pharma, which sold Oxycontin, is waiting for a hearing on August 9 regarding the bankruptcy proposal. Under that plan, some members of the Suckler family, who own a pharmaceutical company, will donate more than $ 4.3 billion to compensate those and local governments injured by the opioid painkillers.

In addition, Purdue will be dissolved or sold by 2024, Sacklers will be banned from the opioid business and will have to relinquish control of the Family Foundation to an independent trustee. In exchange, Suckler’s family is exempt from further proceedings.For suggestions Spark backlash Among several state attorney generals who claim that Suckler’s family is leaving with considerable wealth.



States reach $26 billion deal with wholesalers, J&J over opioid lawsuits Source link States reach $26 billion deal with wholesalers, J&J over opioid lawsuits

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