NH, other states reach $450m settlement with another opioid manufacturer
Endo files for bankruptcy after deal over marketing tactics
In the agreement, Endo International plc, which filed for Chapter 11 bankruptcy protection Tuesday night in the Southern District of New York, resolves allegations that it used deceptive marketing of Opana ER and downplayed the risk of addiction and overstated the benefits.
The states, along with the District of Columbia and the U.S. Virgin Islands, allege that Endo falsely promoted the benefits of Opana ER’s so-called abuse-deterrent formulation, which they said did nothing to deter oral abuse and led to deadly outbreaks of hepatitis and HIV due to its widespread abuse via injection. Opana ER was withdrawn from the market in 2017.
The agreement requires payment of $450 million in cash over 10 years to participating states and subdivisions. It also requires the company to turn over its opioid-related documents for publication online in a public document archive and pay $2.75 million for archival expenses. Finally, it bans the marketing of Endo’s opioids forever.
New Hampshire Attorney General John Formella said, “The states allege that Endo falsely promoted the benefits of Opana ER’s so-called abuse-deterrent formulation, which did nothing to deter oral abuse and led to deadly outbreaks of Hepatitis and HIV due to its widespread abuse via injection.”
Formella added that the newest settlement “continues our efforts over many years to hold opioid manufacturers, distributors and dispensers responsible for their role in fueling the opioid crisis in New Hampshire.”
The state has filed several complaints related to the ongoing opioid crisis. The most recent came in July, when the AG’s office filed a complaint against the nation’s three largest pharmacy chains, CVS, Walgreens and Rite Aid, over their opioid related distribution and dispensing practices.
New Hampshire previously filed complaints against opioid manufacturers Purdue Pharma and Mallinckrodt. Both also filed for bankruptcy protection. The Mallinckrodt bankruptcy plan, under which New Hampshire will receive payments, has been confirmed by the court. The Purdue bankruptcy plan is awaiting court confirmation.
The state also filed complaints against national opioid distributors McKesson Corp, Cardinal Health and Amerisource Bergen. Those cases were resolved when participating states reached a settlement with the companies that will provide the state with some $115 million over 18 years. And a case filed against opioid manufacturer Johnson & Johnson is scheduled for trial in early September.