The Israeli-based pharmaceutical firm Teva Pharmaceuticals USA and related affiliates of Teva Pharmaceutical Industries Ltd. said on Sunday that it will pay $85 million to the state of Oklahoma in order to bring to end a lawsuit in which it was accused of expanding that state’s opioid epidemic, according to Oklahoma’s attorney general.
While the terms of the settlement agreement may take up to two weeks to finalize, the money will go to the state once it’s received, according to a statement released by Oklahoma’s Attorney General Mike Hunter. The funds will then be used to abate the opioid crisis in Oklahoma. A future announcement containing the specific terms of the agreement will be made at a later date.
Teva Pharmaceutical Industries Ltd. has been developing and producing medicines for more than a century. It is a global leader in generic and specialty medicines with a portfolio consisting of over 35,000 products in nearly every therapeutic area.
The state’s trial against the remaining defendant and nation’s largest drug manufacturer, Johnson & Johnson, is still set for Tuesday in Cleveland County. The case will be heard by Cleveland County District Judge Thad Balkman.
Hunter said the team remains focused on Tuesday. “Today’s announcement is a testament to the state’s legal team’s countless hours and resources preparing for this trial and their dedication and resolve to hold the defendants in this case accountable for the ongoing opioid overdose and addiction epidemic that continues to claim thousands of lives each year.”
Hunter continued by noting, “Nearly all Oklahomans have been negatively impacted by this deadly crisis and we look forward to Tuesday, where we will prove our case against Johnson & Johnson and its subsidiaries.”
Teva is the second defendant group to settle ahead of Tuesday’s trial. In March, Purdue Pharma settled with the state for $270 million, with the majority of the money going to the Oklahoma State University Center for Wellness and Recovery. The university will use the money to fund addiction treatment and research to stem the ongoing addiction epidemic in Oklahoma and nationwide.
The state’s settlement agreement resolves current claims against Teva Pharmaceuticals, USA, Inc., Cephalon, Inc., Watson Laboratories, Inc., Actavis, LLC., and Actavis Pharma, Inc., F/K/A Watson Pharma, Inc.
Earlier this year, Teva was also involved in a price-fixing scandal. The firm is accused of artificially boosting prices of drugs, sometimes as high as 1,000%.
“The fraud is estimated to have cost taxpayers several billion dollars. Led by Connecticut’s attorney general, more than 40 states are now pursuing legal action against Teva and other drug companies involved in the scandal, which touched more than 100 drugs,” reported i24news.tv.
As Teva pointed out in its own statement, the settlement “does not establish any wrongdoing on the part of the company; Teva has not contributed to the abuse of opioids in Oklahoma in any way. The company has resolved this matter in a way that benefits the people who have suffered from abuse of opioids and to help stop the effects of the opioid crisis. Teva continues to keep the long-term stability of the company at the forefront.”
The firm insisted that it remains focused on its future as a leader in creating access to life saving medications like the company’s recent final approval for the first generic naloxone spray, which is widely recognized as an essential lifesaving medication to combat opioid abuse.
“While the company has long stated that the courtroom is not a place to address the crisis, Teva is pleased to put the Oklahoma case behind it and remains prepared to vigorously defend claims against the company, including the upcoming federal court trial in Cleveland where the majority of the cases are pending,” the statement continued. “The state will allocate the payment made by Teva at its discretion including for payment of its fees and costs in connection with this settlement.”
Teva officials went on to say that their company recognizes the “devastating impact to communities across the U.S. as a result of illegal drug use and the misuse and abuse of opioids that are available legally by prescription. Teva continues to advocate for collaborative solutions throughout the country.”
The Oklahoma case is being closely watched by plaintiffs in other opioid cases, particularly some 1,850 mostly municipal and state governments that have sued the same drug makers in the federal court in Ohio, Haaretz reported. “Sources said Teva probably paid a “premium” to settle with Oklahoma because it was scheduled to be the first to go to trial.”
The agreement, the paper continued, “comes three weeks after Teva CEO Kare Schultz took aim at the lawyers filing suits accusing opioid manufacturers of being responsible for an epidemic of addiction, and compared the claims to blaming drunk driving on the makers of alcoholic drinks.”
