Attorney General Bonta Announces $4.25 Billion Nationwide Settlement with Opioid Manufacturer Teva

California Attorney General Rob Bonta announced an agreement in principle on key financial terms with opioid manufacturer Teva. The agreement would provide up to $4.25 billion to participating states and local governments to address the opioid crisis. While critical details of the settlement remain the subject of ongoing negotiations, Teva disclosed the agreement Tuesday ahead of its earnings announcement Wednesday.

“This agreement is another major step toward addressing the opioid crisis and healing our communities,” said Attorney General Bonta. “Nothing can undo the harm opioids makers like Teva have inflicted on families across the country or the lives lost to the opioid epidemic. But this agreement will provide much-needed relief for its victims and importantly, critical funds for overdose prevention and opioid addiction disorder treatment.”

Teva, an Israel-based drug manufacturer, makes Actiq and Fentora, which are branded fentanyl products for cancer pain, and a number of generic opioids including oxycodone. States alleged that Teva:

• Promoted potent, rapid-onset fentanyl products for use by non-cancer patients;
• Deceptively marketed opioids by downplaying the risk of addiction and overstating their benefits, including encouraging the myth that signs of addiction are actually “pseudoaddiction” treated by prescribing more opioids; and
• Failed to comply with suspicious order monitoring requirements along with its distributor, Anda.

The parties have agreed on the following financial terms:

• Teva will pay a maximum of $4.25 billion in monetary payments over 13 years. This figure includes amounts Teva has already agreed to pay under settlements with individual states, funds for participating states and local governments, and the $240 million of monetary payments in lieu of product described below.
• As part of the financial term, Teva will provide up to $1.2 billion in generic naloxone (valued at Wholesale Acquisition Cost or WAC) over a 10-year period or $240 million of cash in lieu of product, at each state’s election. Naloxone is used to counteract overdoses.
• The settlement will build on the existing framework that states and subdivisions have created through other recent opioid settlements.

A final settlement remains contingent on agreement on critical business practice changes and transparency requirements.

The negotiations are being led by the following states: California, Illinois, Iowa, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and Wisconsin.  While New York is among the 12 states that negotiated this proposed settlement framework, Teva and New York are still engaged in further negotiations.

Original source can be found here.