First opioid trial begins in Oklahoma; Purdue, Teva reach out-of-court settlements

By PharmaCompass

2019-05-30

Impressions: 88 Article

As the first state trial in the opioid epidemic cases began in Oklahoma in the US this week, families that have lost their loved ones to opioid overdose saw a chance that drug companies — such as Purdue Pharma, Teva Pharmaceuticals and Johnson & Johnson (J&J) — may be held accountable after years of waiting for recompense. Oklahoma’s case is the first of more than 40 state lawsuits to come to trial and is being closely watched elsewhere.

Twenty three months ago, the Oklahoma Attorney General Mike Hunter had sued the three drug companies and their subsidiaries, alleging they are responsible for the opioid crisis.

Opioid manufacturers have been accused of contributing to an epidemic linked to a record 47,600 overdose deaths in 2017, according to the US Centers for Disease Control and Prevention.

The main accused in the opioid epidemic, Purdue Pharma, has settled with the state for US$ 270 million and will not be on trial. Purdue Pharma was widely blamed for sparking the epidemic with the introduction and promotion of its painkiller OxyContin in 1996. Much of the US$ 270 million will be used to help establish a national addiction treatment and research centre at the Oklahoma State University. On Sunday, Teva too settled out of court for US$ 85 million.

J&J is now the sole defendant in the case. In opening statements, Hunter said the flood of opioid medications was the “worst manmade public health crisis in the history of our state and country.” He said over 4,000 Oklahomans had died of overdoses from prescription opioids between 2007 and 2017. The companies have asserted that they responsibly marketed legitimate narcotics approved by the FDA to quell pain.

Meanwhile, McKinsey said it will no longer work with Purdue Pharma and will stop all other work related to the sale of the pain pills.

The relationship between the opioid giant and McKinsey goes back at least a decade, according to a lawsuit filed in state court earlier this year by the Massachusetts Attorney General. The lawsuit describes how Purdue executives worked with McKinsey consultants to increase sales of OxyContin.

Similarly, JPMorgan Chase & Co has also cut ties with Purdue Pharma quoting the same reason, and forcing the drugmaker to find a new bank to manage cash and bill payments.

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